Module 2.4 Coefficient of Determination and Adj R Squared

Question 1

can be used to test the overall effectiveness of entire set of independent variables in explaining the dependent variable

Answer 1

R^2 (coefficient of determination)

Question 2

R^2 =

Answer 2

(total variation - unexplained variation)/total variation

Question 3

alternate R^2 =

Answer 3

SST - SSE/SST = RSS/SST

Question 4

why is R^2 not always a reliable measure?

Answer 4

almost always increases as variables are added to model, even if marginal contribution is not statistically significant

Question 5

adjusted R^2 =

Answer 5

1 - ((n-1)/(n-k-1) x (1-R^2))

Question 6

adjusted R^2 is always ____ compared to R^2

Answer 6

less than or equal to