by Associate Professor Togar Alam Napitupulu, Ph.D

Regression analysis also generates the so called “coefficient of determination” with common symbol R2. We know that the following formula hold for regression:

\[\sum_{i = 1}^n (Y_i – \bar Y)^2 = \sum_{i = 1}^n (Y_i – \hat Y)^2 + \sum_{i = 1}^n (\hat Y – \bar Y)^2\]

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