In the estimation of a multiple regression model with two explanatory variables and 20 observations,SSE = 550 and SST = 1,000.The value of adjusted R² is the closest to ____. A) 0.39 B) 0.45 C) 0.55 D) 0.61

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Quizplus · Accepted Answer

Adjusted R² is calculated as 1 - [(SSE/(n-k-1)) / (SST/(n-1))], where n is the number of observations and k is the number of explanatory variables. Here, n = 20, k = 2. Plugging in the values: 1 - [(550/(20-2-1)) / (1000/(20-1))] = 1 - [(550/17) / (1000/19)] ≈ 0.39.

In the Estimation of a Multiple Regression Model with Two