Akaike information criterion
The Akaike information criterion (AIC) scores competing regression models by rewarding a better fit and penalising extra explanatory variables, so the model with the lowest AIC is preferred over the one with the highest raw R-squared.
See it move
Loading infographic...
Fitted to the same 40 observations, Model A (2 predictors, 3 parameters) has SSE = 500 and AIC = 107.03. Model B adds five more predictors (8 parameters) and reaches a lower SSE of 470, yet its AIC rises to 114.56. The extra parameters cost more than the small fit improvement is worth, so Model A is preferred.
Where it fits
SubjectData Analysis & StatisticsAdvancedTopicMultiple Regression & InterpretationAdvanced
The formula
LaTeX
Variables
- Number of observations
- Error sum of squares (squared units of y)
- Number of estimated parameters, including the intercept
Scores a regression model by trading off fit (lower SSE) against complexity (more parameters); the model with the lowest AIC is preferred.