If the R-squared value for a regression model is high, the regression model will necessarily provide accurate forecasts of the y variable.

Question

Quizplus · Accepted Answer

A high R-squared value indicates a strong correlation between the independent and dependent variables in the sample data, but it does not guarantee that the model will provide accurate forecasts, especially if the model is overfitted, the data is noisy, or if future conditions differ from those of the past.

If the R-Squared Value for a Regression Model Is High