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# is a social variable. It is affected by so many forces. # x #is one of the forces.

Now we shall have it like this.

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

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

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

We calculate #R^2#. If its value is 0.74.

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

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