Coefficient of Determination r2 | Correlation Analysis | Statistics & Data Analysis

Coefficient of Determination r^2 | Correlation Analysis | Statistics & Data Analysis

Coefficient of Determination (r^2)
Coefficient of determination r^2 in statistics under correlation and regression analysis explains the proportion of variation in the dependent variable, due to variation in the independent variable.

The coefficient of correlation ‘r’ explains the degree of correlation between independent and dependent variables. It may be a negative or positive correlation of low, moderate, and high degree of correlation. But the coefficient of correlation unable to explain the proportion of variation in the dependent variable due to variation in the independent variable.

Hence the square of the coefficient of correlation i.e. r^2, pronounced as R-squared gives the coefficient of determination or the proportion of explained variations in the dependent variable due to the independent variable.

Coefficient of Non-determination (K^2)
Now if we subtract the coefficient of determination from 1 (assuming the total variation in the dependent variable is equal to 1) then we have the coefficient of non-determination denoted by K-squared or K^2 = 1- r^2. The coefficient of non-determination gives the unexplained variation in the dependent variable due to the variation in external factors.

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