Can r2 be as high as 0.60 in cross sectional data?

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David Eugene Booth

R^2=ssr/sst=1-(sse/sst) Where is a problem with R^2 being say 0.7?

Raimundas Vaitkevicius

Of course it can. Why not?

Saadia Irfan

Oh ok. I never got this high so was wondering. Thanks

In theory, R^2 can be as high as 1. In practice, it depends on many things. In small samples R^2 could be high just by accident.