Question
The coefficient of determination, or R2 is known as a measure of overall goodness of fit for the model. It's range is the following: 0
The coefficient of determination, or R2 is known as a measure of "overall goodness of fit" for the model. It's range is the following: 0 <= R2 <= 1. Generally, the closer it is to 1, the better the goodness of fit there is. The R2 tells us how much of the variation in Y is being explained by the variation in the independent variables collectively. For example, if the reported R2 is .5251, then 52% of the variation in Y is being explained by the Xs. This also means that approximately 47% remains unexplained (Keller, p. 632).\ \ A colleague on your team has supplied you with new data: the # of shark attacks in the area and the average temperature in the areas for where each bank is located. See the excel file entitled Bank_Spring 2017. He is known around the office as an "R2 Hunter" (someone who seeks to maximize their R2 value in research). He is insisting on including it somehow in the regression you estimated. Go ahead and estimate your model again with shark attacks and temperatures, and choose the correct answer below.
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