What does an r^2-value between 0.7 and 1.0 indicate?

An r² value, also known as the coefficient of determination, measures how well the variables in a statistical model predict the outcome. An r² value between 0.7 and 1.0 indicates a strong correlation between the two variables. This range suggests that a significant proportion of the variance in the dependent variable can be explained by the independent variable or variables in the model.

When the r² value is closer to 1, it suggests that the model accurately captures the relationship between the variables, indicating that as one variable changes, the other variable tends to change in a predictable manner. This establishes a solid connection that hints at the reliability of the predictions made from the data.

In contrast, lower r² values indicate weaker correlations, meaning the variables do not explain much of the variation in each other. Thus, a value between 0.7 and 1.0 demonstrates that there is a strong relational pattern that can be leveraged for prediction or analysis.