Friday, March 28, 2014

Regression Output Explained



Regression Output’s-

-         Multiple R - The correlation coefficient between the observed and predicted values. It ranges in value from 0 to 1. A small value indicates that there is little or no linear relationship between the dependent variable and the independent variables.
-         R- Square- Square of Correlation i.e square of multiple R.  It ranges from zero to one, with zero indicating that the proposed model does not improve prediction over the mean model and one indicating perfect prediction.
-         Adjusted R- Square - Adjusted R2 is used to compensate for the addition of variables to the model. Adjusted R-squared will decrease as predictors are added if the increase in model fit does not make up for the loss of degrees of freedom. Likewise, it will increase as predictors are added if the increase in model fit is worthwhile.
-         Significance F – Tells us that output is not by chance. Smaller the value greater the probability that output is not by chance. Significance F tells us the probability about the output is a good fit.
-         P-Value - Smaller the value greater the probability that output is not by chance.
-         F – Regression Mean Square / Residual Mean Square.
-         Sum of Squares due to Regression-  is a quantity used in describe how well a regression model, represents the data being modeled. In particular, the explained sum of squares measures how much variation there is in the modeled values and this is compared to the total sum of squares, which Used for t-test and f-test calculations.
-         Residuals- are the difference between the observed values and those predicted by the regression equation.
-         Residual sum of squares- measures how much variation there is in the observed data, and to the, which measures the variation in the modeling errors. A smaller residual sum of squares is ideal.
-         Mean Square – Sum of Square / Degrees of Freedom.
-         Residual Mean Square - . A smaller residual sum of squares is ideal.



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