As you read through a general report that contained the multiple regression model, you have noticed that the adjusted R-squared that has been reported is greater than the regular R-squared. Discuss the likelyhood of this occurence.
2007-01-30
06:38:59
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2 answers
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asked by
stuck
1
in
Science & Mathematics
➔ Mathematics
I didn't want to confuse you with my "answers" but here is my thoughts for the question...
The adjusted R-squared takes into consideration the number of independent variables while the regular R-squared does not. When new independent variables are added to the model, the adj R-value will increase if the t-stat on the coefficient estimater of the new variable is greater than absolute 1.
Am I on the right track?
2007-01-30
07:25:32 ·
update #1