Yes it is.
Look at almost all econometrics books

Yves

"Rajarshi Guha" <[EMAIL PROTECTED]> wrote in message
news:[EMAIL PROTECTED]
> Hello,
>   I was wondering whether anybody whould be able to help with this query.
>
>
> I have some neural network models which makes predictions for a dataset.
When
> comparing various models we evalute the effectiveness by looking the RMS
> error and the value of R^2 between the predicted and actual values.
>
> However, I seem to have read somewhere that R^2 is not always a 'good
> indicator' - in that a data set can be randomly generated yet show a good
> R^2. Is this true? And if so, does anybody know how I can reference this
> (paper/book)?
>
> Thanks,
> Rajarshi


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