Coefficient of determination

The coefficient of determination, often called R-squared, is a statistical measure that shows how well a model predicts or explains the variation in data. Think of it as a percentage: if R-squared is 80%, it means the model accounts for 80% of the changes observed in the data, while the remaining 20% is due to other factors or randomness. It helps you assess the strength of the relationship between variables, where higher values indicate a better fit. However, it doesn't prove causation, only the degree to which the model matches the data.