# What does an R-Squared value indicate about a linear regression?

Nov 1, 2015

It indicates to what extent, the independent variable explains the dependent variable.

#### Explanation:

Suppose your dependent variable $y$ is a social variable. It is affected by so many forces. $x$is one of the forces.

Now we shall have it like this.

$y$ is affected by$x$ and variables other than $x .$

In regression we collect data relating to $x$ and $y .$

We want to know how far the variation in $y$ is caused by$x$ alone.

We calculate ${R}^{2}$. If its value is 0.74.

Our conclusion is that 74% variation in $y$ is attributable to $x$.

It goes without saying the rest 26% change in $y$ is caused by variables other than $x$.