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Using rotation transformations to maximize the coefficient of determination in simple linear regression models
Journal article

Using rotation transformations to maximize the coefficient of determination in simple linear regression models

Ross Dickinson, Susan Perry and Subhash C Bagui
European Journal of Mathematics and Computer Science, Vol.3(1), pp.66-78
2016

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Abstract

In many instances, excessive variation in observed data limits the utility of simple linear regression. We show that a simple rotation of the coordinate axis about the origin reduces the observed variance in the data, improves estimates of the slope, and increases the coefficient of determination. Furthermore, we provide a modified version of the basic regression model that accommodates a rotation angle and a method for determining the angle that maximizes the coefficient of determination.

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