Section 2: Short Essay Questions: 1. A source of constant discussion among applied econometricians is the degree to which measures of the overall fit of an estimated equation also measure the quality of that regression. The two most used measures of fit are R² and R²_. (a) Carefully distinguish between R² and R2. (b) of the two, which do you recommend typically using? Why? (c) What drawbacks are there to the use of the measure you chose (as your answer to part (b) above) as the primary determinant of the overall quality of a regression?
Section 2: Short Essay Questions: 1. A source of constant discussion among applied econometricians is the degree to which measures of the overall fit of an estimated equation also measure the quality of that regression. The two most used measures of fit are R² and R²_. (a) Carefully distinguish between R² and R2. (b) of the two, which do you recommend typically using? Why? (c) What drawbacks are there to the use of the measure you chose (as your answer to part (b) above) as the primary determinant of the overall quality of a regression?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 8E
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