If R² is less than 1, A)the regression analysis is incorrect. B)the observation data is suspect. C)some observations do not lie on the regression line. D)the probability of having the correct fit is very low.

Question

Quizplus · Accepted Answer

R² is the residual standard error, which measures the average distance of the observations from the regression line. If it is less than 1, it means that some observations are very close to the regression line, which indicates a good fit. However, it does not necessarily mean that all observations lie on the regression line, as there will always be some random variability in the data. Therefore, choice C is the best answer.

If R2 Is Less Than 1

If R² Is Less Than 1