R square value

[Rajlaxmi Garg]

Dear Members,

I would like to know what is the acceptable value of R square in social sciences empirical research. What if the path coefficient is significant but Rsquare value is below 15%. Is it acceptable or questionable? 

Kindly provide some references for the same.

[Seema Malik]

Dear Rajlaxmi

please find attached a screen shot from Damodar and Gujarati Book in response to your query.

Regards

Dr. Seema Malik

Associate Professor

Department of Commerce,

Bhagat Phool Singh Mahila Vishwavidyalaya

Khanpur Kalan, Sonipat, Haryana.

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[Aroma J]

Hello ! What if the R square is too high ? Almost around 1 ? If that’s not acceptable? How to resolve it ?

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[Seema Malik]

Hello

it means your model is perfectly fit, but it is not possible practically because in every phenomena when you apply regression, some variables are always left behind which are captured in residuals. The main concern should be the significant explanatory powers of your independent variables. Sometimes we keep on adding insignificant variables that leads to increase R square but they are  not good for your model and those are captured by looking at the gap between R square and adjusted R square.....

Regards

Dr. Seema Malik

Associate Professor

Department of Commerce,

Bhagat Phool Singh Mahila Vishwavidyalaya

Khanpur Kalan, Sonipat, Haryana.

To view this discussion visit https://groups.google.com/d/msgid/dataanalysistraining/CAEUcrkf88eg7dUVognEo1TFPtm9ZmbtUYHBoYi96AWi-5JycVg%40mail.gmail.com.