Which of the following correctly identifies an advantage of using adjusted R2 over R2?
A. Adjusted R2 corrects the bias in R2.
B. Adjusted R2 is easier to calculate than R2.
C. The penalty of adding new independent variables is better understood through adjusted R2 than R2.
D. The adjusted R2 can be calculated for models having logarithmic functions while R2 cannot be calculated for such models.
Answer: C
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