If a nonlinear regression equation provides a better fit to the actual data, but a straight- line regression is estimated, the estimated straight- line regression will have a greater R² than the R² from the nonlinear regression.

Question

Quizplus · Accepted Answer

The R² (also known as sum of squared residuals) measures the difference between the predicted values and the actual values of the dependent variable. If a nonlinear regression equation provides a better fit to the actual data, then the sum of squared residuals in the nonlinear regression will be smaller than the sum of squared residuals in the straight-line regression. Therefore, the statement in the question is false.

If a Nonlinear Regression Equation Provides a Better Fit to the Actual