Hi guys,
Would it be correct to say both the F-Test and R^2 determine variation in the independent variables that explain variation in the dependent variable??
Cheers
No, it is wrong…
R^2 determines how the independent variables jointly explain the variation in the dependent variable, while F-test focuses on the significance of the independent variables all-together on the dependent variable.
So, they are different. One looks at the joint significance of the independent variables (F-test), while the other looks out the level of predictability of the independent variables jointly (R^2).