Regression Analysis: How Do I Interpret R-squared and Assess the Goodness-of-Fit?
In our case, y is GPA and there are 2 explanatory variables – SAT and Random 1,2,3. The adjusted R-squared is always smaller than the R-squared, as it penalizes excessive use of variables. In other words, SAT scores explain 41% of the variability of the college grades for our sample. Unfortunately, regressions explaining the entire…