When the R² of a regression equation is very high,it indicates that A)all the coefficients are statistically significant. B)the intercept term has no economic meaning. C)a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. D)there is a good chance of serial correlation and so the equation must be discarded.

Question

Quizplus · Accepted Answer

A high R² value indicates that a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. It does not necessarily indicate anything about the significance of coefficients, the economic meaning of the intercept term, or the presence of serial correlation.

When the R2 of a Regression Equation Is Very High,it

When the R² of a Regression Equation Is Very High,it