Suppose that one equation has 3 explanatory variables and an F-ratio of 52. Another equation has 5 explanatory variables and an F-ratio of 40. The first equation will always be considered a better model.

Question

Quizplus · Accepted Answer

The F-ratio alone cannot determine which model is better as it does not take into account the number of explanatory variables. In order to compare the two models, we need to use other measures such as adjusted R-squared or AIC/BIC.

Suppose That One Equation Has 3 Explanatory Variables and an F-Ratio