Which of the following is true of R2?
A. R2 is also called the standard error of regression.
B. A low R2 indicates that the Ordinary Least Squares line fits the data well.
C. R2 usually decreases with an increase in the number of independent variables in a regression.
D. R2 shows what percentage of the total variation in the dependent variable, Y, is explained by the explanatory variables.
Answer: D
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A firm's marginal resource cost curve is
a. horizontal only if the firm is a price taker in the product market b. horizontal only if the firm is a price taker in the resource market c. vertical only if the firm is a price taker in the product market d. vertical only if the firm is a price taker in the resource market e. horizontal only if the firm is a price taker in both the product and resource markets
The slope of the budget line will change
A) when the consumer's income increases. B) when the consumer's taste changes. C) when the total satisfaction changes. D) when the price of one of the products changes.