Mini toolsDefinition
A modified version of R-squared that adjusts for the number of predictors in the model.
Detailed Explanation
Unlike regular R-squared, Adjusted R-squared penalizes the addition of predictors that don't improve the model's explanatory power. It only increases if new terms improve the model more than would be expected by chance. Can be negative if the model is very poor.
Use Cases
Used in multiple regression analysis, particularly when comparing models with different numbers of predictors.
