What is the purpose of the R-squared statistic in linear regression?

What is the purpose of the R-squared statistic in linear regression?

Step 1: Understand that in linear regression, we are trying to predict a dependent variable (the outcome) using one or more independent variables (the predictors).
Step 2: Recognize that the dependent variable can vary or change based on different factors.
Step 3: Know that R-squared is a statistic that helps us understand how well our independent variables explain the changes in the dependent variable.
Step 4: Realize that R-squared is a number between 0 and 1.
Step 5: If R-squared is 0, it means the independent variables do not explain any of the variance in the dependent variable.
Step 6: If R-squared is 1, it means the independent variables explain all the variance in the dependent variable.
Step 7: A higher R-squared value means a better fit of the model to the data, indicating that the independent variables are good at explaining the dependent variable.

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