Business Analytics
Adjusted R-squared is a statistical measure that provides insight into the goodness-of-fit of a multiple linear regression model, adjusting for the number of predictors included. While the traditional R-squared value indicates the proportion of variance explained by the model, adjusted R-squared accounts for the number of independent variables, offering a more reliable metric for model comparison. This is especially important in multiple linear regression, where adding more predictors can artificially inflate the R-squared value without improving the model's true explanatory power.
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