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    Principles of Econometrics
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    Exam 8: Further Inference in the Multiple Regression Model
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    When Are R<sup>2</sup> and Adjusted R<sup>2</sup> Equal
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When Are R2 and Adjusted R2 Equal

Question 11

Question 11

Multiple Choice

When are R2 and adjusted R2 equal?


A) when the model is correctly specified
B) when K = 1
C) when the error terms are normally distributed
D) when an unrestricted model is estimated

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