What does an R-Squared value show?

1 Answer
Apr 22, 2018

How well a regression fits the points

Explanation:

With a R2 value close to 1, we the regression would fit the points perfectly:

![https://useruploads.socratic.org/Fh8dyLATA6oWvKNjN37L_r_squared_1_regression.jpg)

Since the R2 isn't 1 the points won't fit the line perfectly even though the R2 value is so high.
Since the R2 is so high the graph would be accepted. Typically the lower limit is approximately R2=95 for a good graph.