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R-Squared Statistical Metric






Purpose





Formula


Picture showing the formula for calculating the r-squared


VariableDescriptionFormula
Picture showing the variable for Sum of squares of residualsSum of squares of residuals (errors)Picture showing the formula for calculating Sum of squares of residuals
Picture showing the variable for total sum of squaresTotal sum of squaresPicture showing the formula for calculating total sum of squares
Picture showing the variable to hold actual valuesActual value
Picture showing the variable to hold predicted valuesPredicted value
Picture showing the variable to hold mean of actual valuesmean of actual values



Interpretation Of R-Squared


R-Squared ValueMeaning
1Perfect fit — predictions match actual data exactly.
0The model predicts no better than the mean.
0The model performs worse than using the mean (bad model).
0The model explains some of the variance.





Posted By  -  Karan Gupta
 
Posted On  -  Friday, December 5, 2025

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