model you should mainly consider the adjusted R squared which is a penalized R2

# Model you should mainly consider the adjusted r

• 17

This preview shows page 7 - 11 out of 17 pages.

model, you should mainly consider the adjusted R-squared, which is a penalized R2 for a higher number of predictors. Adjusted R-Squared is formulated such that it penalizes the number of terms (read predictors) in your model Both R 2 and the adjusted R 2 give you an idea of how many data points fall within the line of the regression equation. However, there is one main difference between R 2 and the adjusted R 2 : R 2 assumes that every single variable explains the variation in the dependent variable . The adjusted R 2 tells you the percentage of variation explained by only the independent variables that actually affect the dependent variable .
The test focuses on the slope of the regression line Y = Β 0 + Β 1 X where Β 0 is a constant, Β 1 is the slope (also called the regression coefficient), X is the value of the independent variable, and Y is the value of the dependent variable.
If there is a significant linear relationship between the independent variable X and the dependent variable Y , the slope will not equal zero.

#### You've reached the end of your free preview.

Want to read all 17 pages?

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern