coefficient of determination (r2)

Definition

A statistical method that explains how much of the variability of a factor can be caused or explained by its relationship to another factor.

Coefficient of determination is used in trend analysis. It is computed as a value between 0 (0 percent) and 1 (100 percent). The higher the value, the better the fit. Coefficient of determination is symbolized by r² because it is square of the coefficient of correlation symbolized by r. The coefficient of determination is an important tool in determining the degree of linear-correlation of variables ('goodness of fit') in regression analysis. Also called r-square.

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