How Do You Calculate Coefficient Of Determination?
The coefficient of determination, R squared, is used in linear regression theory in statistics as a measure of how well the regression equation fits the data. It is the square of R, the correlation coefficient, that provides us with the degree of correlation between the dependent variable, Y, and the independent variable X. R ranges from -1 to +1. If R equals +1, then Y is perfectly proportional to X, if the value of X increases by a certain degree, then the value of Y increases by the same degree. If R equals -1, then there is a perfect negative correlation between Y and X. If X increases, then Y will decrease by the same proportion. On the other hand if R=0, then there is no linear relationship between X and Y. R squared varies from 0 to 1. This gives us an idea of how well our regression equation fits the data. If R squared equals 1, then our best fit line passes through all the points in the data, and all of the variation in the observed values of Y is explained by its relationship
