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I run a multiple regression model having 2 independent variables. The R-squared value for my regression analysis on two predictor variables is 0.75. How do I interpret this value?

Aron Louise C. Morales
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The R2 is a measure of explanatory power your model provides. More precisely, it measures how much of the variations in the dependent variable are due to the predictors selected in your model. However, the goal of statistical analysis should not necessarily be to maximize this value, nor are models with a low R2 necessarily poor. If you are using multiple predictors, then you must look at the adjusted R2 as this has taken into account the multiple independent variables. This article sums it up pretty well: https://statisticsbyjim.com/regression/how-high-r-squared/#:~:text=the%20Wrong%20Question-,How%20high%20does%20R%2Dsquared%20need%20to%20be%3F,or%20lower%20than%20this%20value.

NDG
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  • Just to add a more direct answer to the question: R^2 shows how much variance in the dependent variable is explained by the model. – Ken Lee Jun 02 '21 at 19:26