Section 2: Short Essay Questions: 1. A source of constant discussion among applied econometricians is the degree to which measures of the overall fit of an estimated equation also measure the quality of that regression. The two most used measures of fit are R² and R²_. (a) Carefully distinguish between R² and R2. (b) of the two, which do you recommend typically using? Why? (c) What drawbacks are there to the use of the measure you chose (as your answer to part (b) above) as the primary determinant of the overall quality of a regression?

Section 2: Short Essay Questions: 1. A source of constant discussion among applied econometricians is the degree to which measures of the overall fit of an estimated equation also measure the quality of that regression. The two most used measures of fit are R² and R²_. (a) Carefully distinguish between R² and R2. (b) of the two, which do you recommend typically using? Why? (c) What drawbacks are there to the use of the measure you chose (as your answer to part (b) above) as the primary determinant of the overall quality of a regression?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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