R-squared from the sums of squares

EasyStatistics~2m

An OLS regression reports an error (residual) sum of squares SSE=120\text{SSE} = 120 and a regression (explained) sum of squares SSR=80\text{SSR} = 80. What is the R2R^2 of this regression?

Show hints (2)+
  1. SST=SSR+SSE\text{SST}=\text{SSR}+\text{SSE}. What fraction of it does the model explain?
  2. R2=SSR/SST=80/200R^2=\text{SSR}/\text{SST}=80/200.

Answer

Reveal answer →

0.4 (± 0.001)

Create a free account to see the full worked solution and track your progress.

Interview format: Hedge Fund Quant, Systematic & Data-Driven Trading

Related questions