All of the Following Are True, with the Exception of One

question 8

Short Answer

All of the following are true, with the exception of one condition: a. a high $R ^ { 2 }$ or $\bar { R } ^ { 2 }$ does not mean that the regressors are a true cause of the dependent variable.
b. a high $R ^ { 2 }$ or $\bar { R } ^ { 2 }$ does not mean that there is no omitted variable bias.
c. a high $R ^ { 2 }$ or $\bar { R } ^ { 2 }$ always means that an added variable is statistically significant.
d. a high $R ^ { 2 }$ or $\bar { R } ^ { 2 }$ does not necessarily mean that you have the most appropriate set of regressors.

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Definitions:

Descriptive Statistics

Statistical methods that summarize and describe the features of a dataset through metrics such as mean, median, mode, and standard deviation, without drawing conclusions about the population from which the sample was drawn.

Inferential Statistics

Statistical methods that allow researchers to make predictions or inferences about a population based on a sample.

Large Sample Sizes

The use of a substantial number of participants or observations in research to increase the validity and reliability of the findings.

Inferential Statistics

It is the branch of statistics that deals with drawing conclusions and making predictions about a population based on a sample.