Calculation of Coefficient of

determination (RSquare)
• Coefficient of determination also called R2 score is used to
evaluate performance of linear regression model

• It is amount of variation in output dependent attribute which is

predictable from input independent variable(s)

• It is used to check how well-observed results are reproduced

by model depending on ratio of total deviation of results
described by model
Interpretation of R2 score
Assume R2 = 0.80

• It can be referred that 80% of changeability of dependent output

attribute can be explained by model while remaining 20% of
variability is still unaccounted for

• R2 indicates proportion of data points which lie within line created by

regression equation

• A higher value of R2 shows multi-collinearity in data

• A higher value of R2 produces better model fit for data

Interpretation of R2 score
• A good level of R2 is between 0.50 to 0.99 where most explanatory
variables are significant

• A higher value of R2 is not always good for regression model and can
indicate problems

• A lower value of R2 is negative indicator for model in general which

means model does not produce good fit

• A lower value of R2 indicates that independent variable is not

explaining much in variation of dependent variable
Case 1 Model gives accurate results
Case 2 Model gives same results always
Case 3 Model gives ambiguous results