# What is the adjusted R-Squared?

##### 1 Answer

Nov 9, 2015

It adjusts for explanatory variable bias.

#### Explanation:

Every time you add an additional **explanatory variable** to a **multivariate** regression, R-squared will **increase** leading the statistician to believe that a stronger correlation exists with the added information.

In order to correct for this upward bias, the **adjusted R-squared** is used.