RS1U1P12 is a commonly used measure of goodness of fit in regression analysis, representing the proportion of variability in the dependent variable that is explained by the independent variable(s). It does not directly measure statistical significance of the regression or coefficients, nor does it evaluate the underlying economic theory.

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R²is a Measure Of

Question 34

Multiple Choice

R²is a measure of:

A) the statistical significance of the regression.
B) how well the regression model fits the underlying data.
C) the statistical significance of a given coefficient.
D) how well the economic theory explains the behavior of the underlying data.

Correct Answer: