You are a consultant on a project that looks at the difficulties of closing down a business across countries. The table below provides information for a random sample of countries. It lists the amount of time in years needed to close a business and the recovery rate on the initial investment.
(Note: The statistics are from the World Bank Doing Business Report)
(a) Using a value of R = -0.8692, calculate the R2. Interpret the R2 in words.