The adjusted coefficient of multiple determination is adjusted for
A) The value of the error term $ \varepsilon$

B) The number of dependent variables in the model
C) The number of parameters in the model
D) The number of outliers
E) The level of significance $\alpha$

Question

The adjusted coefficient of multiple determination is adjusted for
A) The value of the error term $ \varepsilon$

B) The number of dependent variables in the model
C) The number of parameters in the model
D) The number of outliers
E) The level of significance $\alpha$

Quizplus · Accepted Answer

The adjusted coefficient of multiple determination is adjusted for the number of parameters in the model to account for the fact that adding more parameters to a model will always increase the coefficient of determination, even if those parameters are not actually improving the model's fit to the data.

The Adjusted Coefficient of Multiple Determination Is Adjusted for A) ε \varepsilonε

The Adjusted Coefficient of Multiple Determination Is Adjusted for
A) $\varepsilon$