– Someone please explain R-squared regression to me!

Question

Seriously. I will need it for work. I haven’t been able to understand that shit from any online resource until now. Please ELI5

In: 380

Answer 1

In short: it’s the percentage of variation of the outcome variable affected by your predictor variable.

It’s a good measure of how influential your predictor variable of your model is of your outcome variable. When you take 1-R2, that gives you unexplained variance, which is comprised of additional factors outside your model that are additionally affecting the outcome variable.