adjusted-r-squared

Learning objectives: Distinguish between the relative assumptions of single and multiple regression. Interpret regression coefficients in a multiple regression. Interpret goodness of fit measures for single and multiple regressions, including R2 and adjusted-R2. Construct, apply and interpret...

The problem with the typical R-squared (aka, coefficient of variation) is that it can be artificially increased by simply adding more independent variables (aka, regressors). A higher R^2 does not necessarily imply that the model is a better fit. The "adjusted R-squared" addresses this problem...