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# What is R-Squared?

Module by: Lekulana Kolobe. E-mail the author

Summary: 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].

## Example 1

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.

## Exercise 1

Can R squared be used to indicate the strength of a relationship?

### Solution

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.

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