M. Fatih Tüzen explains an important regression concept:
When building a statistical model, one of the first numbers analysts and data scientists often cite is the R², or coefficient of determination. It’s widely reported in research, academic theses, and industry reports — and yet, frequently misunderstood or misused.
Does a high R² mean your model is good? Is it enough to evaluate model performance? What about its adjusted or predictive counterparts?
Read on to learn the answers to each question. H/T R-Bloggers.