December 23, 2020
Scientists observed that as the number of independent variables increased, so did the value of R-Squared Statistics. Thus casting doubt on the reliability of R-Squared Statistic. To remedy this vulnerability adjusted R-Squared Statistics was introduced. Its equation penalizes/counters the increase in R-Squared Statistics with increase in number of variables by introducing number of columns in the denominator of R-Squared calculations.
by : Monis Khan
Quick Summary:
Scientists observed that as the number of independent variables increased, so did the value of R-Squared Statistics. Thus casting doubt on the reliability of R-Squared Statistic. To remedy this vulnerability adjusted R-Squared Statistics was introduced. Its equation penalizes/counters the increase in R-Squared Statistics with increase in number of variables by introducing number of columns in […]