Which of the following statements is correct?
A) The sum of squared errors (SSE) embodies the variation in the dependent variable accounted for by the regression equation.
B) The value of the R-squared statistic exceeds unity if the total sum of squares exceeds the sum of squared errors.
C) The value of the R-squared statistic equals zero when all the observations in a data set are equal to the mean observation.
D) The higher the value of the R-squared statistic, the higher is the goodness of fit of a regression equation.
E) The value of the R-squared statistic is insensitive to the number of explanatory variables in a regression equation.

Question

Quizplus · Accepted Answer

The R-squared statistic measures the proportion of the variance in the dependent variable that is predictable from the independent variables. A higher R-squared value indicates a better fit of the regression model to the data, meaning that the model explains a higher proportion of the variance.

Which of the Following Statements Is Correct