If the R-squared value is low, then using OLS equation is very easy to predict individual future outcomes on y given a set of values for the explanatory variables.

Question

If the R-squared value is low, then using OLS equation is very easy to predict individual future outcomes on y given a set of values for the explanatory variables.​

Quizplus · Accepted Answer

If the R-squared value is low, it means that the explanatory variables have weak explanatory power on the response variable, and therefore, using the OLS equation to predict individual future outcomes may not be accurate.

If the R-Squared Value Is Low, Then Using OLS Equation