Which of the following statements provides the best guidance for model building? A)If the value of r²increases as more variables are added to the model, the variables should remain in the model, regardless of the magnitude of increase. B)If the value of the adjusted r²increases as more variables are added to the model, the variables should remain in the model. C)If the value of r²increases as more variables are added to the model, the variables should not remain in the model, regardless of the magnitude of the increase. D)If the value of the adjusted r²increases as more variables are added to the model, the variables should not remain in the model.

Question

Quizplus · Accepted Answer

The adjusted r-squared value is a better measure than the r-squared value because it accounts for the number of variables in the model. As more variables are added to the model, the r-squared value will always increase, but the adjusted r-squared value may decrease if the variables do not provide significant improvement to the model. Therefore, the best guidance for model building is to choose the model with the highest adjusted r-squared value.

Which of the Following Statements Provides the Best Guidance for Model