Pseudo R2 and probchi2

Question

I am running a profit regression and I am finding difficulties in interpreting the prob>chi2 =0.0000 statistic. Also, should I be concerned that Pseudo R2=0.0209? How do I interpret it.

Thank you.

Analyst · Answer

Usually a low likelihood based pseudo-R is an indicator that model in present form cannot explain variability of data.

If sample size is very large then almost any difference from zero will be statistically significant even though practical significance might not be so.

Pseudo R2 and prob>chi2

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