relationship (for straight line regression, this means that the straight line model is a constant line (slope = 0, intercept = ) between the response variable and regressors). An interior value such as R2 = 0.7 may be interpreted as follows: "Seventy percent of the variance in the response variable can be explained by the explanatory variables. The remaining thirty percent can be attributed to unknown, lurking variables or inherent variability." A caution that applies to R2, as to other statistical descriptions of correlation and association is that "correlation does not imply causation." In other words, while correlations may sometimes provide valuable clues in uncovering causal relationships among variables, a non-zero estimated correlation between two variables is not, on its own, evidence that changing the value of one variable would result in changes in the values of other variables. For example, the practice of carrying matches (or a lighter) is correlated with incidence of lung cancer, but carrying matches does not cause cancer (in the standard sense of "cause"). In case of a single regressor, fitted by least squares, R2 is the square of the Pearson product-moment correlation coefficient relating the regressor and the response variable. More generally, R2 is the square of the correlation between the constructed predictor and the response variable. With more than one regressor, the R2 can be referred to as the coefficient of multiple determination. Inflation of R2 In least squares regression using typical data, R2 is at least weakly increasing with increases in the number of regressors in the model. Because increases in the number of regressors increase the value of R2, R2 alone cannot be used as a meaningful comparison of models with very different numbers of independent variables. For a meaningful comparison between two models, an F-test can be performed on the residual sum of squares , similar to the F-tests in Granger causality, though this is not always appropriate. As a reminder of this, some authors denote R2 by Rq2, where q is the number of columns in X (the number of explanators including the constant). To demonstrate this property, first recall that the objective of least squares linear regression is where Xi is a row vector of values of explanatory variables for case i and b is a column vector of coefficients of the respective elements of Xi. The optimal value of the objective is weakly smaller as more explanatory