Which of the following is true of R2?
A. R2 is also called the standard error of regression.
B. A low R2 indicates that the Ordinary Least Squares line fits the data well.
C. R2 usually decreases with an increase in the number of independent variables in a regression.
D. R2 shows what percentage of the total variation in the dependent variable, Y, is explained by the explanatory variables.
Answer: D
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An upward shift of the planned expenditure curve resulting from a decrease in the price level corresponds to
A) aggregate demand shifting to the left. B) a movement up along the aggregate demand curve. C) a movement down along the aggregate demand curve. D) aggregate demand shifting to the right.
The benefits of international trade include
a. more choice for consumers b. efficiency gains from specialization c. more competition d. all of the above e. (a) and (c) only
Are comic books money?
A. Yes, because the way economists define money, basically everything is money. B. Yes, because comic books can easily be traded for goods and services. C. No, because money cannot be something with intrinsic value, which comic books have. D. No, because selling a comic book takes work and provides an uncertain amount of funds.
Why is the monopolistic competitor’s demand curve more elastic than a pure monopolist’s, but less elastic than a pure competitor’s? What factors determine the price elasticity of demand for a monopolistic competitor?
What will be an ideal response?