Building a handrail for your deck may seem like a simple task. In many cases it is -- until the time arrives to figure out how to get the balusters or spindles evenly spaced along the handrail. Evenly spaced spindles improve the symmetry of the rails and lend a professional look to the project. But finding the right measuring formula may give the average home handyman pause.
R-squared is a statistical measurement that determines the proportion of a security's return, or the return on a specific portfolio of securities, that can be explained by variations in the stock market, as measured by a benchmark index.
Both adjusted R-squared and predicted R-square provide information that helps you assess the number of predictors in your model: Use the adjusted R-square to compare models with different numbers of predictors; Use the predicted R-square to determine how well the model predicts new observations and whether the model is too complicated