A regression analysis was done of residential property values in a city based on 157 properties. The independent variable used to predict the Sale Price (Y) is Square Footage (X). The estimated regression equation is: Y = 96,600 + 22.5X R-square = .77 Where Y= Sale Price X = Square Footage. Interpret the value of R-square.
A. 77% of the observed sale process will fall within two standard deviations from the least squares line.
B. We are 77% confident that Square Footage is linearly related to Sale Price (Y).
C. 77% of the variability in Sale Prices can be explained by Square Footage.
D. There is a moderately strong negative correlation between Sale Price and Square Footage.