RESEARCH METHODOLOGY

Detailed explanation-1: -Well, the ratio of the explained variation to the total variation is a measure of how good the regression line is. If the regression line passed through every point on the scatter plot exactly, it would be able to explain all of the variation. The further the line is from the points, the less it is able to explain.

Detailed explanation-2: -R2 is the ratio of the explained variation compared to the total variation. There are n-1 degrees of freedom in Ordinary Least Square residuals. The variance of the slope estimator increases as the error variance decreases.