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    Real Econometrics The Right Tools to Answer Important Questions
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    Exam 3: Bivariate Ols: the Foundation of Econometric Analysis
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    Imagine We Have Two Separate Models, Model 1 and Model
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Imagine We Have Two Separate Models, Model 1 and Model

Question 2

Question 2

Multiple Choice

Imagine we have two separate models, Model 1 and Model 2. The R2 for Model 1 is 0.8 and the R2 for Model 2 is 0.4.


A) Model 1 is a better model than Model 2
B) Model 2 is a better model than Model 1
C) R2 is neither necessary nor sufficient for analysis to be useful

Correct Answer:

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