R-squared › Common Misconceptions

Several misconceptions about R-squared are widespread. First, higher R-squared isn't always better.a model with $R^2 = 0.99$ might be overfitted and perform poorly on new data. Second, R-squared doesn't indicate causation, only correlation. Third, R-squared of 0.3 isn't always bad.context matters, as social sciences might consider this excellent while physics would find it poor. Fourth, R-squared doesn't work for all model types.it's designed for linear regression, and logistic regression requires pseudo-R-squared measures.