What does R-squared indicate in a linear regression analysis?

The strength of the relationship between variables
The proportion of variance in the dependent variable explained by the independent variables
The average error of predictions
The number of predictors in the model

What does R-squared indicate in a linear regression analysis?

Step 1: Understand that in linear regression, we are trying to predict one variable (dependent variable) based on one or more other variables (independent variables).
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 that the independent variables do not explain any of the variance in the dependent variable.
Step 4: A value of 1 means that the independent variables explain all the variance in the dependent variable.
Step 5: If R-squared is, for example, 0.75, it means that 75% of the changes in the dependent variable can be explained by the independent variables in the model.

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