Ever wondered how well your predictions match reality?

Coefficient of determination

Ever wondered how well your predictions match reality?

Imagine you're trying to guess how much rain will fall tomorrow based on today's weather patterns.

Think of R² as a score that tells you how close your guesses are to the actual amount of rain. It's like a report card for your predictions.

Example

If you guessed 5 inches of rain and it actually rained 4 inches, your R² score would reflect how much of that difference you could have predicted.

Remember this

R² helps you understand the accuracy of your predictions by showing the proportion of variation you can explain.

Text adapted from Wikipedia, licensed under CC BY-SA 4.0.

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Educational content, not financial advice.

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