 Important Statistics Generated by Most Regression ProgramsByron D. Eastman
Chapter 6 in Interpreting Mathematical Economics and Econometrics, 1984, pp 59-94 from Palgrave Macmillan Abstract: Abstract Probably the first thing a researcher looks at when viewing the results of a statistical test of some theory is the coefficient of multiple determination, or R2. This statistic provides a measure of how good the theory is. By ‘good’ we mean how well the theory explains the facts. A good theory explains more than does a bad theory. But what do we mean by ‘explains more’? The coefficient of multiple determination is the measure of ‘more’ and ‘less’. It specifies how much the behaviour of something depends on something else. More exactly, the R2 states the degree to which changes in a set of causal variables generate changes in some other variable. A formal statement of the meaning of the R2 would be something like this: The coefficient of multiple determination (R2) describes the proportion of the variation in the dependent variable ‘explained’ by the variation in the independent variables. Keywords: Important Statistic; Scatter Diagram; Disturbance Term; Education Variable; Error Region (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-17702-8_6 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-17702-8_6 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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