How do you find coefficient of determination? - Answers

The coefficient of determination, denoted as ( R^2 ), is calculated by taking the ratio of the variance explained by the regression model to the total variance in the dependent variable. It is derived from the formula ( R^2 = 1 - \frac{SS_{res}}{SS_{tot}} ), where ( SS_{res} ) is the sum of the squares of the residuals (the differences between observed and predicted values) and ( SS_{tot} ) is the total sum of squares (the variance of the observed data). A value of ( R^2 ) close to 1 indicates that the model explains a large portion of the variance, while a value close to 0 suggests that it explains very little.