Monthly Archives: November 2014

Relationship between Coefficient of Determination & Squared Pearson Correlation Coefficient

The usual way of interpreting the coefficient of determination is to see it as the percentage of the variation of the dependent variable () can be explained by our model. The exact interpretation and derivation of the coefficient of determination … Continue reading

Posted in Econometrics, Statistic | Tagged , , | 10 Comments

The Coefficient Of Determination or R2

The coefficient of determination shows how much of the variation of the dependent variable () can be explained by our model. Another way of interpreting the coefficient of determination , which will not be discussed in this post, is to … Continue reading

Posted in Econometrics, Statistic | Tagged , , | 7 Comments