The adjusted R-squares are disclosed as well as the F-statistic for each industry.
The high adjusted R-squares for the regression equations in each industry indicate that the model has good explanatory power.
Common sampling error across equations leads to OLS coefficient estimates and R-squares
that are roughly proportional to the horizon under the null of no predictability.
However the adjusted R-squares are quite low for Models 1 and 3.
For the food sector the models for the overall cost of capital produce high R-squares (64-78 per cent, when unadjusted and 58 to 75 per cent, when adjusted).
We report validated R-squares and average cross-validated R-squares for all three outcomes.
Overall, the ability of the DCG system to explain variance in concurrent utilization was moderate, with R-squares ranging from 18.
This incremental information usefulness can be further quantified by comparing the R-squares
of the two regressions.
The adjusted R-squares
and variances and skewnesses of the residuals of these regressions were then treated as paired observations.
were calculated to account for any increase in explanatory power due to the larger number of categories in [PM-DRGs.
The option-implied R-squares
for individual stocks average 20 percent, which is higher than the regression R-squares
on a standard set of marketwide lagged instruments.
While achieving a modest R-square
may be consistent with the literature, a reviewer or reader who is not a fan of utilization studies might have no interest in seeing such a study published.