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The Adjusted Coefficient of Determination

question 165

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The adjusted coefficient of determination, The adjusted coefficient of determination,    <sup>2</sup>,compared to R<sup>2</sup>,provides a better comparison between multiple regression models with different numbers of independent variables.
2,compared to R2,provides a better comparison between multiple regression models with different numbers of independent variables.

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Definitions:

Proportional Rate Structure

A tax system where the tax rate remains constant regardless of the amount of income, as opposed to progressive or regressive tax structures.

Progressive Rate Structure

This is a tax system in which the tax rate increases as the taxable base amount increases, typically applied to incomes to ensure higher earners pay a greater percentage of their income.

Regressive Rate Structure

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower earners relative to higher earners.

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed, a tool used to gauge the impact of additional income or deductions on income tax.

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