Question

How do you interpret the coefficient of determination, coefficient of alienation, standard error of estimate

Answer 1

Coefficient of Determination

It is interpreted as the proportion of the variance in the dependent variable that is predictable from the independent variable.

Where SSE is the variation left unexplained, and SST is the total variation, therefor the above fraction of SSE/SST gives the proportion of variation unexplained. So, 1-SSE/SST gives the proportion of variation explained.

Coefficient of alienation

The coefficient of alienation represents the proportion of variance in the dependent variable that is not accounted for by the independent variable(s). It is the coefficient of determination's counterpart. It is estimated by

.

Standard error of estimate

The Standard Error of Estimate is the measure of the variation of an observation made around the computed regression line. Simply, it is used to check the accuracy of predictions made with the regression line.

The standard error of estimate also measures the variation in the actual values of Y from the computed values of Y (predicted) on the regression line