When Two Regression Models Applied on the Same Data Set

question 115

Multiple Choice

When two regression models applied on the same data set have the same response variable but a different number of explanatory variables,the model that would evidently provide the better fit is the one with a

• A)Lower standard error of the estimate and a higher coefficient of determination.
• B)Higher standard error of the estimate and a higher coefficient of determination.
• C)Higher coefficient of determination and a lower adjusted coefficient of determination.
• D)Lower standard error of the estimate and a higher adjusted coefficient of determination.

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Definitions:

Investment

Investment refers to the allocation of resources, usually financial, in order to generate income or profit, including the purchase of assets with the expectation that it will generate payoff in the future.

Advanced Economy

A term used to describe a country with a very high level of economic development, characterized by high-income levels, diversified economic structures, and stable financial markets.

Economic Growth

An increase in the production of goods and services in an economy over a period, typically measured by the rise in real GDP.

Productivity

The efficiency with which goods and services are produced, typically measured in terms of output per labor hour.