Measures of performance Flashcards
1
Q
TSS =
A
Explained sum of squares (ESS) + Residual sum of squares (RSS)
2
Q
Total sum of squares (TSS)
A
Measures the total variation
3
Q
Explained sum of squares (ESS)
A
Measures variation in the predicted values
4
Q
Residual sum of squares (RSS)
A
The variance that the regression model cant explain
5
Q
Coefficient of determination (R SQUARED)
A
How much variance of the data can be explained by the model between 0 (none) and 1 (all)
6
Q
Issue with R SQRD
A
As more regressors are added R^2 never falls giving false suggestion that a bigger model is always better
7
Q
Adjusted R SQRD
A
Adjusted from normal R SQRD to where it can increase if the added variable helps explain or decrease if it doesn’t
