Would you prefer a regression model where r2098 or r2002 Why

Would you prefer a regression model where r²=0.98 or r²=0.02? Why?

Solution

Hi,

We would prefer  r²=0.98 model here.

Explanation:

R-squared is a statistical measure of how close the data are to the fitted regression line. It is also known as the coefficient of determination, or the coefficient of multiple determination for multiple regression.

The definition of R-squared is fairly straight-forward; it is the percentage of the response variable variation that is explained by a linear model. Or:

R-squared = Explained variation / Total variation

R-squared is always between 0 and 100%:

In general, the higher the R-squared, the better the model fits your data. However, there are important conditions for this guideline that I