Inside seeking scare from regular individuals, the brand new quants often thumb right up the nostrils and you can say things like “an informed complement range demonstrates to you 70% of one’s difference.” Even worse, they could label this the newest “R squared” really worth.
You can understand why report from images. An educated complement line explains 70% of one’s variance means that the entire part of the yellow boxes try 70% lower than the first bluish packets of one’s horizontal range. Continue reading 2. Perseverance instead of regression to your suggest