Explore commonly used personal finance terms.
Adjusted R-squared is a statistical metric used in regression analysis to determine the explanatory power of a model, adjusted for the number of independent variables. It accounts for the addition of variables, providing a more accurate measure of a model’s goodness of fit. Adjusted R-squared is commonly used in finance to evaluate the reliability of models predicting asset prices, helping analysts assess the predictive accuracy and relevance of variables in financial forecasting.
