Analyzing a Regression Using Data from a Sub-Sample of the Current

question 30

Essay

Analyzing a regression using data from a sub-sample of the Current Population Survey with about 4,000 observations, you realize that the regression R², and the adjusted R², $\overline { \mathrm { R } }$ ², are almost identical. Why is that the case? In your textbook, you were told that the regression R² will almost always increase when you add an explanatory variable, but that the adjusted measure does not have to increase with such an addition. Can this still be true?

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Definitions:

Relevant Information

Data or facts that are pertinent and have a bearing on the decision-making process.

Oral Auction

An oral auction is a sale method where buyers vocally submit their bids for items until the highest bid is reached and the item is sold.

Expected Winning Bid

The anticipated amount or price that is predicted to win at an auction or in a competitive bidding process.

Bidders

Individuals or entities that offer a price for goods, services, or assets in competitive situations such as auctions.