The fit of the models y = β₀ + β₁x + β₂x²+ ε and y = β₀ + β₁ln(x)+ ε can be compared using the coefficient of determination R².

Question

Quizplus · Accepted Answer

The coefficient of determination, or R-squared, measures the proportion of variance in the dependent variable that is predictable from the independent variable(s). It is a statistic used to compare the fit of different regression models, but it cannot be used to directly compare models with different independent variables or functional forms. Therefore, it is not appropriate to compare the fit of the two models in the question using the coefficient of determination.

The Fit of the Models Y = β0 + β1x

The Fit of the Models Y = β₀ + β₁x