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MathsGee Android Q&A

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You have built a multiple regression model. Your model R² isn’t as good as you wanted. For improvement, your remove the intercept term, your model R² becomes 0.8 from 0.3. Is it possible? How?
in Data Science & Statistics by Platinum (147,718 points) | 432 views

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Yes, it is possible. We need to understand the significance of intercept term in a regression model. The intercept term shows model prediction without any independent variable i.e. mean prediction. The formula of R² = 1 – ∑(y – y´)²/∑(y – ymean)² where y´ is predicted value.   

When intercept term is present, R² value evaluates your model wrt. to the mean model. In absence of intercept term (ymean), the model can make no such evaluation, with large denominator, ∑(y - y´)²/∑(y)² equation’s value becomes smaller than actual, resulting in higher R².

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MathsGee Android Q&A

MathsGee Android Q&A