I have the following question regarding the proper usage of R-squared value.
Say I have an equation, that predicts energy consumption for the month of a building. One of the input variables accounts for time, so 1 would be for January, 2 would be for February, etc. and 12 would be for December
For one year, I would have 12 numbers for predicted data points. Say also at the end of the year I am able to get the exact energy consumption from my Electric company. So now I have 12 predicted data points and 12 exact data points which were measured without any error.
Would it be an accurate analysis to take these data points, and perform a regression analysis using excel? Could I then interpret the R-squared value as the telling me how similar the two sets of data are, and overall tell me whether or not the equation that predicts energy consumption is a good enough approximation of the true energy consumption?
Also, if there's a some statistics genius who could tell me the proper way to interpret R-squared, I would really appreciate it. Thanks