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The Difference Between R2 and Adjusted R2 is That

Question 1

Multiple Choice

The difference between R2 and adjusted R2 is that:


A) adjusted R2 always increases with each independent variable added while R2 does not
B) adjusted R2 takes the number of independent variables into consideration
C) R2 is better in explaining the amount of variation
D) there is really no difference between the two, especially when the number of independent variables is large

Correct Answer:

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