Question

7) Identify and interpret the adjusted R2 (one paragraph):

• What does the value of the adjusted R2 reveal about the model?
• If the adjusted R2 is low, how has the choice of independent variables created this result?

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.60
R Square	0.36
Adjusted R Square	0.26
Standard Error	9.25
Observations	30.00
ANOVA
	df	SS	MS	F	Significance F
Regression	4.00	1212.46	303.12	3.54	0.02
Residual	25.00	2139.14	85.57
Total	29.00	3351.60
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	-66.22	61.21	-1.08	0.29	-192.28	59.83	-192.28	59.83
K/BB	5.76	1.87	3.07	0.01	1.90	9.63	1.90	9.63
K/9	-2.14	1.48	-1.45	0.16	-5.18	0.90	-5.18	0.90
P/IP	4.55	3.83	1.19	0.25	-3.34	12.44	-3.34	12.44
W#	0.77	16.82	0.05	0.96	-33.87	35.41	-33.87	35.41

Answer 1

From provided output ,

Adjusted R2  = 0.26

Adjusted R2  tell about how the model is fitted.and it adjust the value by number of independent variables are significant and insignificant in model .

If Adj R2 value near to 1 we can say that model is fitted good and independent variables are significant to predict the value of Y dependent variable.

Here, Adj R 2 value is very less we can conclude that fitted model is not good fit. There may some independent variable which are not necessary for predicting dependent variable Y. If we remove variable K/BB from model. It may possible we get good fitted model.

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