Consider the relationship between the coefficient of determination
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Consider the relationship between the coefficient of determination

4. Consider the relationship between the coefficient of determination and the Adjusted R-squared. Which of the following is true?

A. Adjusted R-squared is always accurate and correctly indicates if the additional regressor improves the fit of the regression.

B. R-squared is a better measure of goodness of fit than adjusted R-squared.

C. As you add irrelevant independent variables to a regression, R-squared will never decrease and usually increases.

D. If all of the independent variables are significant, then Adjusted R-squared will be greater than the R2.

Hint

Statistics

B. R-squared is a better measure of goodness of fit than adjusted R-squared.

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