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Difference Between R Squared and Adjusted R Squared

R-squared (R²) measures the proportion of variance in the dependent variable explained by independent variables, while Adjusted R-squared adjusts R² for the number of predictors and sample size, penalizing unnecessary variables. R² always increases with additional predictors, whereas Adjusted R² only increases if a new predictor improves the model significantly. Use R² for models with the same predictors and Adjusted R² for models with different numbers of predictors to avoid overfitting.

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6 views1 page

Difference Between R Squared and Adjusted R Squared

R-squared (R²) measures the proportion of variance in the dependent variable explained by independent variables, while Adjusted R-squared adjusts R² for the number of predictors and sample size, penalizing unnecessary variables. R² always increases with additional predictors, whereas Adjusted R² only increases if a new predictor improves the model significantly. Use R² for models with the same predictors and Adjusted R² for models with different numbers of predictors to avoid overfitting.

Uploaded by

Arka Torres Bunk
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Difference between R-squared and Adjusted

R-squared
R² (Coefficient of Determination)
R² measures the proportion of variance in the dependent variable that is explained by the independent
variables in the model.

Adjusted R²
Adjusted R² adjusts R² for the number of predictors and sample size, penalizing unnecessary variables so
it only increases if a new variable improves the model.

Metric Meaning Behavior when adding variables

R² Proportion of variance explained by the Always increases or stays the same


model (no penalty for extra predictors). when more predictors are added.

Adjusted R² Proportion of variance explained adjusted Increases only if a new predictor


for the number of predictors and sample improves the model more than would be
size (penalizes complexity). expected by chance; otherwise
decreases.

Usage in regression analysis:


- Use R² to measure goodness-of-fit when comparing models that have the same predictors.
- Use Adjusted R² when comparing models with different numbers of predictors because it penalizes
unnecessary complexity.
- If Adjusted R² increases when adding a variable, that variable likely provides useful explanatory power.

Example:
Model 1: R² = 0.80, Adjusted R² = 0.79 — one predictor explains 80% of variance.
Model 2: R² = 0.85, Adjusted R² = 0.83 — second predictor improves the model.
Model 3: R² = 0.86, Adjusted R² = 0.82 — third predictor adds little value (possible overfitting).

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