Suppose you estimate a regression using 20 observations and 16 independent variables. You compute R 2 to

Question:

Suppose you estimate a regression using 20 observations and 16 independent variables. You compute R2 to be .98. Explain why R2 may not be an appropriate measure of the goodness of fit. Can you think of a better one?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

Question Posted: