What does an R-Squared value indicate about a linear regression?

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Answer 1 · 2015-11-01T02:25:42

It indicates to what extent, the independent variable explains the dependent variable.

Suppose your dependent variable $y$ $y$ is a social variable. It is affected by so many forces. $x$ $x$ is one of the forces.

Now we shall have it like this.

$y$ $y$ is affected by $x$ $x$ and variables other than $x .$ $x.$

In regression we collect data relating to $x$ $x$ and $y .$ $y.$

We want to know how far the variation in $y$ $y$ is caused by $x$ $x$ alone.

We calculate $R^{2}$ $R^2$ . If its value is 0.74.

Our conclusion is that 74% variation in $y$ $y$ is attributable to $x$ $x$ .

It goes without saying the rest 26% change in $y$ $y$ is caused by variables other than $x$ $x$ .