Coefficient of Determination (R-Squared)

• Typically noted as R2yx or R-squared in the stats report.
• This value measures the percentage of variation in Y that is explained by the model and will be between 0 and 1 (and not to be confused with the Correlation Coefficient which will be between -1 and 1).
• Example: a coefficient of determination/R-squared = .80 would mean that 80% of the variation in dependent Y variable is explained by the model’s regression equation.
• For single variable/simple regression, the coefficient of determination equals the square of the data sample’s correlation coefficient.

The following video from Khan Academy explains the calculation of the Coefficient of Determination.