The correct answer is: B. degree of dispersion is two
The degree of dispersion is a measure of how spread out the data is. A low degree of dispersion indicates that the data is clustered closely together, while a high degree of dispersion indicates that the data is spread out over a large range.
In the case of the question, the variance of the y-variable is explained by the x-variable. This means that the x-variable is a good predictor of the y-variable. The higher the correlation between the x-variable and the y-variable, the more the variance of the y-variable is explained by the x-variable.
A degree of dispersion of two indicates that the data is spread out over a moderate range. This is a good indication that the x-variable is a good predictor of the y-variable.
The other options are incorrect because they do not indicate that the variance of the y-variable is explained by the x-variable.
- Option A: degree of dispersion is one. This indicates that the data is clustered very closely together. This is not a good indication that the x-variable is a good predictor of the y-variable.
- Option C: degree of dispersion is three. This indicates that the data is spread out over a large range. This is not a good indication that the x-variable is a good predictor of the y-variable.
- Option D: degree of dispersion is four. This indicates that the data is spread out over a very large range. This is not a good indication that the x-variable is a good predictor of the y-variable.