How To Fix /SAPAPO/MA721 - R**2 is smaller than the predefined lower limit

/SAPAPO/MA721 - Overview

• Message type: E = Error

• Message class: /SAPAPO/MA -

• Message number: 721

• Message text: R**2 is smaller than the predefined lower limit

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/MA721 - R**2 is smaller than the predefined lower limit ?

  The SAP error message /SAPAPO/MA721 R**2 is smaller than the predefined lower limit typically occurs in the context of SAP Advanced Planning and Optimization (APO) when dealing with statistical forecasting or planning functions. This error indicates that the calculated R-squared (R²) value for a statistical model is below a predefined threshold, which suggests that the model may not be a good fit for the data.
  
  Cause:
  
  Poor Data Quality: The underlying data used for forecasting may have issues such as missing values, outliers, or insufficient historical data.
  Inappropriate Model Selection: The statistical model being used may not be suitable for the data characteristics (e.g., linear regression may not fit well with non-linear data).
  Insufficient Data Points: There may not be enough data points to generate a reliable statistical model.
  Seasonality or Trend Issues: If the data has strong seasonal patterns or trends that are not accounted for in the model, it can lead to a