What does the R-squared value indicate in a linear regression model?
Practice Questions
Q1
What does the R-squared value indicate in a linear regression model?
The proportion of variance explained by the model
The slope of the regression line
The number of predictors in the model
The correlation between independent variables
Questions & Step-by-Step Solutions
What does the R-squared value indicate in a linear regression model?
Step 1: Understand that in a linear regression model, we have two types of variables: dependent (the one we want to predict) and independent (the one we use for prediction).
Step 2: R-squared is a number that helps us understand how well our independent variables explain the changes in the dependent variable.
Step 3: R-squared values range from 0 to 1. A value of 0 means the independent variables do not explain any of the variance in the dependent variable.
Step 4: A value of 1 means the independent variables explain all the variance in the dependent variable.
Step 5: For example, if R-squared is 0.8, it means 80% of the changes in the dependent variable can be explained by the independent variables.
