What is the difference between the following measures of fit for multiple regressions: R? and adjusted R? None of these A Increases for every additional regressor added while the adjusted R? decreases. b. R2 values parsimony while the adjusted R2 does not. C. The adjusted R2 increases for every additional regressor added while R? decreases. od. The adjusted R? values parsimony while R? does not. e. Suppose you have the following a regressand Y and four regressors X, X, X, and X. You wish to run an OLS model using these varlabies. Adaitionany. suppose the sample is Li.d., all variables have nonzero finite fourth moments, and the error term has conditional mean zero. In addition, you know that X2+X-X4. Which of the following is true? None of these Drop X, since it is not a linear combination of the other regressors. All 4 regressors must be included to ensure that there is no omitted variable blas. Leave out one of X X or X, since they can be written as a linear combination of each other and reduce potential omitted variable bias. d. Since X X, and x, are a linear combination of each other, only one should be included to satisfy the OLS assumptions. e.

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What is the difference between the following measures of fit for multiple regressions: R? and adjusted R?
None of these
A Increases for every additional regressor added while the adjusted R? decreases.
b.
R2 values parsimony while the adjusted R2 does not.
C.
The adjusted R2 increases for every additional regressor added while R? decreases.
od.
The adjusted R? values parsimony while R? does not.
e.
Suppose you have the following a regressand Y and four regressors X, X, X, and X. You wish to run an OLS model using these varlabies. Adaitionany.
suppose the sample is Li.d., all variables have nonzero finite fourth moments, and the error term has conditional mean zero. In addition, you know that
X2+X-X4. Which of the following is true?
None of these
a,
Drop X, since it is not a linear combination of the other regressors.
All 4 regressors must be included to ensure that there is no omitted variable blas.
Leave out one of X X or X, since they can be written as a linear combination of each other and reduce potential omitted variable bias.
d.
Since X X, and x, are a linear combination of each other, only one should be included to satisfy the OLS assumptions.
e.
Transcribed Image Text:What is the difference between the following measures of fit for multiple regressions: R? and adjusted R? None of these A Increases for every additional regressor added while the adjusted R? decreases. b. R2 values parsimony while the adjusted R2 does not. C. The adjusted R2 increases for every additional regressor added while R? decreases. od. The adjusted R? values parsimony while R? does not. e. Suppose you have the following a regressand Y and four regressors X, X, X, and X. You wish to run an OLS model using these varlabies. Adaitionany. suppose the sample is Li.d., all variables have nonzero finite fourth moments, and the error term has conditional mean zero. In addition, you know that X2+X-X4. Which of the following is true? None of these a, Drop X, since it is not a linear combination of the other regressors. All 4 regressors must be included to ensure that there is no omitted variable blas. Leave out one of X X or X, since they can be written as a linear combination of each other and reduce potential omitted variable bias. d. Since X X, and x, are a linear combination of each other, only one should be included to satisfy the OLS assumptions. e.
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