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What is the difference between the R Square and Adjusted R Square values shown in the Summary Output section of a regression? Example: SUMMARY OUTPUT
What is the difference between the R Square and Adjusted R Square values shown in the Summary Output section of a regression? Example: SUMMARY OUTPUT Regression Statistics Multiple R 0.944267 R Square 0.89164 Adjusted R Square 0.88132 Standard Error 1513.459 Observations O The Adjusted R Square value adjusts for the "overfitting" (too high R Square) caused by including more dependent variables (Y's) in the regression. O The Adjusted R Square adjusts for the higher degrees of freedom in the Residual values of the regression. The Adjusted R Square adjusts for use of the sample standard deviation rather than the population standard deviation in the regression
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