Question 1

Consider a more parsimonious version of the model that we used in our previous Comprehension Assessment. We will refer to this model as Model 1:

LnQ_x=c+b*LnP_x+a₁*LnP₁+u

Also, consider the full model, to which we will refer as Model 2:

LnQ_x=c+b*LnP_x+a₁*LnP₁+a₂*LnP₂+a₃*LnP₃+u

By default, the ________ in Model 2 is greater than the one in Model 1:

- Number of Observations

- F-Stat

- R-Square

- Adjusted R-Square

Question 2

Model 2 offers a better fit compared to Model 1 only if we find that:

- its number of observations is relatively less than Model 1's.

- its number of observations is relatively greater than Model 1's.

- its F-Stat is relatively less than Model 1's.

- its Adjusted R-Square is relatively greater than Model 1's.

- its R-Square is relatively greater than Model 1's.

- its Adjusted R-Square is relatively less than Model 1's.

- its R-Square is relatively less than Model 1's.

- its F-Stat is relatively greater than Model 1's.