39. R^2 and Adjusted R^2 | STATISTICS | Important Concept | Explained in details | Eco (H)

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Published at : 04 Dec 2020
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#statistics #r_square #adjusted_r_square #Coefficientofdetermination
In statistics, the coefficient of determination, denoted R2 or r2 and pronounced "R squared", is the proportion of the variance in the dependent variable that is predictable from the independent variable(s). There are several definitions of R2 that are only sometimes equivalent. One class of such cases includes that of simple linear regression where r2 is used instead of R2. When an intercept is included, then r2 is simply the square of the sample correlation coefficient (i.e., r) between the observed outcomes and the observed predictor values.[4] If additional regressors are included, R2 is the square of the coefficient of multiple correlation. In both such cases, the coefficient of determination normally ranges from 0 to 1.

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