Re:Google Gears Down for Tougher Times
by sd on Wednesday December 03, 2008 @02:33PM
(#384681)
In a linear regression model, r-squared represents how correlated the model is with the data, while beta indicates the relationship between an outcome (e.g., revenue) to an input (e.g., GDP). Thus, a r-squared of one in a model where profit is the dependent variable and GDP is the single independent variable suggests that profit is 100% correlated with GDP. A beta of 1 indicates that profit moves in the same direction and to the same degree as GDP.
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