r² or R² — When to Use What

Graphical explanation of the squared Pearson correlation coefficient and coefficient of determination to help you spot statistical lies

Krishna Rao
Towards Data Science
5 min readAug 3, 2020

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Difference between the Pearson correlation coefficient and the coefficient of determination. Image by author.

Picture this- You are a stock analyst responsible for predicting Walmart’s stock price ahead of its quarterly earnings report. You are hard at work just when your data scientist walks in…

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