Which of the following measures of fit penalizes a researcher for estimating many coefficients with relatively little data?
A)t-statistic.
B)R-square.
C)adjusted R-square.
D)neither the t-statistic, R-square nor the adjusted R-square.

Question

Quizplus · Accepted Answer

The adjusted R-square penalizes a researcher for estimating many coefficients with relatively little data by adjusting for the number of explanatory variables in the model. It is a better measure of fit than the regular R-square when the number of variables in the model is relatively large. The t-statistic is a measure of the significance of individual coefficients, and R-square is a measure of how well the model explains the variation in the dependent variable. Neither of these directly penalizes the researcher for estimating many coefficients with little data.

Which of the Following Measures of Fit Penalizes a Researcher