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, the 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. It adjusts the R-square statistic by taking into account the number of predictors in the model, and thus it is a better measure of fit for models with many predictors. The t-statistic and R-square do not take into account the number of predictors in the model.

Which of the Following Measures of Fit Penalizes a Researcher