The fit of the models y = β₀ + β₁x + ε and ln(y)= β₀ + β₁x + ε can be compared using the coefficients R² found in the two corresponding Excel's regression outputs.

Question

Quizplus · Accepted Answer

The fit of the models cannot be compared directly using the coefficients R² as they are specific to each model and cannot be directly compared between models with different dependent variables (y and ln(y)). Other evaluation measures such as R-squared or adjusted R-squared should be used instead.

The Fit of the Models Y = β0 + β1x

The Fit of the Models Y = β₀ + β₁x