Question: What does a high value of R-squared indicate in regression analysis?

Options:

1. The model explains a large proportion of the variance in the dependent variable
2. The model has a high number of features
3. The model is overfitting the training data
4. The model is underfitting the training data

Correct Answer: The model explains a large proportion of the variance in the dependent variable

Solution:

A high R-squared value indicates that a significant proportion of the variance in the dependent variable is explained by the independent variables in the model.