r-squared

  1. Nicole Seaman

    P1.T2.20.18. Multiple regression

    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...
    • Nicole Seaman
    • Thread
    • adjusted-r-squared assumptions confidence-interval goodness-of-fit joint-hypothesis-test multiple-coefficients multiple-regression r-squared regression-coefficients single-regression
    • Replies: 1
    • Forum: FRM® Practice Questions
  2. Nicole Seaman

    YouTube T2-19: Adjusted R^2

    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...
  3. Nicole Seaman

    YouTube T2-17 Regression: R-squared

    The R-squared (aka, coefficient of determination) is a goodness of fit measure. It gives the percentage of TOTAL variation that is explained by the regression line. Here is David's XLS: https://trtl.bz/2Exyu5c
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