What is R-Squared? 1.1 2006/02/22 00:14:22.539 US/Central 2006/02/22 06:41:21.608 US/Central Lekulana Emmanuel Kolobe klekulana@hotmail.com Lekulana Emmanuel Kolobe klekulana@hotmail.com R-Squared Regression Line This module briefly introduces r-squared. It also gives an example and an exercise. R squared is a statistical measure of how well a regression line approximates real data points [ DefR-Squared]. R squared is a descriptive measure between zero and one, indicating how good one term is at predicting another [ R-SquaredDef]. If you have a model, the closer its R squared value is to one, the greater the ability of that model to predict a trend. A value of R squared equal to one, which only occurs in fairy tales and textbook exercises, would imply that your model provides perfect predictions. Can R squared be used to indicate the strength of a relationship? Yes. R squared can be used as an indicator of the reliability of a relationship identified by regression analysis. An R squared of 0.8 indicates that 80% of the change in one variable is explained by a change in the related variable. References: DefR-Squared. “Definition R-squared”. Accessed on February 22, 2006. At http://www.chartfilter.com/glossary/r11.htm R-SquaredDef. “Definition of R-Squared”. Accessed on February 22, 2006. At http://www.trade-ideas.com/Glossary/R-Squared.html Author of Assignment 3: Lekulana Kolobe Author of Assignment 1: Arnold Mwesigye