Intro to Business Analytics
The coefficient of determination, often represented as $$R^2$$, is a statistical measure that indicates how well the independent variables in a regression model explain the variability of the dependent variable. It ranges from 0 to 1, with a value closer to 1 suggesting a better fit and indicating that a larger proportion of variance is accounted for by the model. This metric is crucial in assessing the performance of multiple linear regression models, helping analysts understand the strength of the relationships between variables.
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