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One Reason for Examining the Adjusted R-Square Value in a Multiple

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One reason for examining the adjusted R-square value in a multiple regression analysis is that the R- square value will increase just by adding additional independent variables to the model, whereas the adjusted R-square accounts for the relationship between the number of independent variables and the sample size and may actually decline if inappropriate independent variables are included in the model.


Definitions:

Sales Journal

A specialized accounting journal used to record all sales transactions of a company, usually on credit.

Cash Payments Journal

A financial journal used in accounting that records all cash outflows or payments made by a business, including expenses and debts.

Other Accounts Column

A section in accounting journals or ledgers for recording entries that do not fit into the standard categories of the accounting system.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source of data for all financial reports.

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