Table of Contents
Let’s Unwind Coefficient of Determination
Coefficient of Determination – Introduction: A coefficient of determination, or R-squared, is a statistic that measures the percentage of variability in a dependent variable that is explained by variability in an independent variable. In other words, it tells you how much of the variation in one variable is due to the variation in another variable.
The coefficient of determination is always between 0 and 1. A value of 0 indicates that there is no relationship between the two variables, while a value of 1 indicates that all of the variability in the dependent variable is due to the variability in the independent variable.
The coefficient of determination can used to determine how well a linear regression model fits the data. A good model will have an R-squared value of close to 1.
Coefficient of Determination Formula
The coefficient of determination is a statistic that is used to measure the amount of variance in a dependent variable that is explained by an independent variable. It calculated by taking square of the correlation coefficient. Also dividing it by the variance of the dependent variable.
Properties of Coefficient of Determination
The coefficient of determination is statistic that used to measure the amount of variation in dependent variable that explained by variation in an independent variable. Coefficient of determination also known as the coefficient of determination R-squared. Coefficient of determination ranges from 0 to 1. However it is equal to percentage of the variation in dependent variable that explained by variation in independent variable.
Steps to Find the Coefficient of Determination
1. Calculate the correlation coefficient.
2. Square the correlation coefficient.
3. Divide the result by the square of the standard error of the estimate.
