Which of the following is true of the R-squared (R2) value in Excel's Trendline function?
A) A value of 1.0 for R2 indicates maximum deviation of the data from the line.
B) If the value of R2 is above 1.0, the line will be at a perfect fit for the data.
C) The value of R2 will always be between -1 and 1.
D) As the value of R2 gets higher, the line will be a better fit for the data.

Question

Quizplus · Accepted Answer

R-squared (R2) measures the goodness of fit of the trendline to the data. The value of R2 ranges between 0 and 1, where 1 indicates a perfect fit of the trendline to the data. As the value of R2 gets higher, the line will be a better fit for the data, and as R2 gets closer to 0, the line is a poorer fit for the data. Therefore, option D is correct. Option A is incorrect because a higher R2 indicates a better fit of the line to the data, not maximum deviation. Option B is incorrect because R2 cannot be above 1.0. Option C is incorrect because R2 ranges between 0 and 1, not -1 and 1.

Which of the Following Is True of the R-Squared (R2)