Question asks for: The portion (%) of the variation in utility index returns explained by the regression model Answer says: The explained variation is equal to the R2 = 40%. I’m a bit confused here. I thought: 1) R2 = how well X(independents) explains variation in Y(dependent) 2) F-stat = how well the regression as a whole explains the variation in Y(dependent) Can someone correct my train of thought?
both of your statements are correct, will be taking the mock tomorrow, i can only imagine if its an index that you would use R2 given the numerous amount of independents