- For a multiple regression model, this value represents the percentage of total variation in Y that is explained by the regression equation.
- The value is between 0 and 1.
- R-squared has a mathematical relationship with TSS, SSE, and RSS.
- R
^{2}= RSS/TSS = (TSS-SSE)/TSS = 1- (SSE/TSS) - The coefficient of determination alone does not indicate that a model is well specified, for example you could have more independent variables than necessary and the R
^{2}will still be high – in this case your model would be not be considered parsimonious. - Adjusted R
^{2}= an alternate measure and will always be smaller than R^{2}

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