Term:
Adjusted R^2
Definition:
- adjusted R^2 penalizes for the addition of explanatory variables, and in doing so measures whether the additional regressors are &quot;significant&quot; - The adjusted R^2 is simply the R^2 scaled down according to the number of the regressors included, in any model including regressors - Adjusted R^2 is less than the R^2 - A measure of goodness of fit