A Source of Constant Discussion Among Applied Econometricians Is the Degree

question 2

Essay

A source of constant discussion among applied econometricians is the degree to which measures of the overall fit of an estimated equation also measure the quality of that regression. To date, we have introduced something like four different measures of overall fit, but the two most used are $\mathrm { R } ^ { 2 }$ and $\overline { \mathrm { R } } ^ { 2 }$ .
(a) Carefully distinguish between $\mathrm { R } ^ { 2 }$ and $\overline { \mathrm { R } } ^ { 2 }$ .
(b) Of the two, which do you recommend typically using? Why?
(c) What drawbacks are there to the use of the measure you chose (as your answer to part (b) above) as the primary determinant of the overall quality of a regression?

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Definitions:

Interaction

involves the reciprocal action or influence between entities, such as people, groups, or systems, often leading to a dynamic process of communication or exchange.

Leader Expectations

The anticipations or beliefs about the behaviors and outcomes leaders expect from their followers, significantly influencing team dynamics and performance.

Supportive Behavior

Actions that express understanding, caring, and encouragement to positively affect the emotional state of others.

Empathic

Pertaining to the ability to understand and share the feelings of another person.