Answer :
The least-squares approximation can account for 96.95% of the variability in between variables.
Explain the term coefficient of determination?
The effectiveness of a statistical model in forecasting a result is indicated by the coefficient of determination (R²). The dependent variable in the model is a representation of the result.
- R² can have a value of 0 or 1, with 1 being the maximum achievable. Simply said, a model's R² will be closer to 1 the more accurate its predictions are.
- R² is a more precise measure evaluating goodness of fit. The amount of volatility with in dependent variable which the model can account for.
- Even when the correlation is negative, the coefficient of determination has always been positive.
The coefficient of determination could be calculated as follows:
r² = 1 - SS Residual/ SS Total
r² = 1 - 1230.848 / 24081.642.
r² = 1 - 0.0511
r² = 0.94
r = 0.9695
This indicates that the least-squares approximation can account for 96.95 % of a variability between the variables.
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