In [1]:
import numpy as np
def compute_r_squared(data, predictions):
# Write a function that, given two input numpy arrays, 'data', and 'predictions,'
# returns the coefficient of determination, R^2, for the model that produced
# predictions.
#
# Numpy has a couple of functions -- np.mean() and np.sum() --
# that you might find useful, but you don't have to use them.
# YOUR CODE GOES HERE
# Calculate denominator
SST = ((data - np.mean(data)) **2).sum()
# Calculate numerator
SSReg = ((predictions-data)**2).sum()
r_squared = 1 - SSReg / SST
return r_squared