Can someone explain the significance of this term in an ANOVA table? If a question asks that you interpret or use R squared, which would you focus on R squared or multiple?
Edited 1 time(s). Last edit at Wednesday, May 26, 2010 at 06:37PM by dhwit.
Also, please correct me if I am wrong, but you should also be aware of the adjusted R squared, which basically states that adding more independent variables will of course raise the R squared, but the adjusted R squared will reduce these effects?
R2 will keep on increasing as you add more independent variables. There will be a time where adding new variables will lead to diminishing returns. This is where adjusted R2 is helpful.
Adjusted R2 will always be lower than R2