The coefficient of determination is .90,the number of observations is 30,and a multiple regression model using 2 independent variables is estimated.What is the value of the adjusted coefficient of determination?
A).8926
B).9000
C).7500
D).8000

Question

Quizplus · Accepted Answer

The adjusted coefficient of determination formula is:
Adjusted R-squared = 1 - [(1 - R-squared) * (n - 1) / (n - k - 1)]
where R-squared is the coefficient of determination, n is the number of observations, and k is the number of independent variables.

Substituting the given values, we get:
Adjusted R-squared = 1 - [(1 - 0.90) * (30 - 1) / (30 - 2 - 1)]
Adjusted R-squared = 1 - (0.10 * 29 / 27)
Adjusted R-squared = 1 - 0.1074
Adjusted R-squared = 0.8926

Therefore, the answer is A) .8926 as it is the correct value of the adjusted coefficient of determination.

The Coefficient of Determination Is