coefficient of determination (r2) definition

coefficient of determination (r2)

Statistical method that explains how much of the variability of a factor can be caused or explained by its relationship to another factor. Used in trend analysis, it is computed as a value between 0 (0 percent) and 1 (100 percent) higher the value, better the fit. Symbolized by 'r2' because it is square of the 'coefficient of correlation' symbolized by 'r', it 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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