Select the FALSE statement about R-squared from the following in the context of

Question

Select the FALSE statement about R-squared from the following in the context of (simpile or multiple) regression analysis

a. R-squared is defined as the ration of SSR to SST

b. R-squared is the percent reduction in the variability of Y when all of the X variables in the regression model are considered

c. R-squared will never decrease with the inclusion of additional independent variables in the model.

d. R-squared is better when it is close to 0 than when it is close to 1

e. R-squared is the indicator of the explanatory power of the regression model.  

Explanation / Answer

a. first statement is true as we all know that R^2 = SSR/SST

b.this is debatable between True/False as R^2 is the % variablity in Y which can be explained by all the independent variables X and the correcect statement is  R-squared is the percent reduction in the variability of Y when all of the X variables in the regression model are considered and kept on increasing

c. This is true as we keep on adding additional parameters R^2 increases but adj R^2 may go in any direction

d.Tis is false as R^2 is better when it is close to 1 as it's the measure of variability of the dependent variable wrt the independent variables.

e. This is true as R-squared is the indicator of the explanatory power of the regression model.  

Hope the above explaination has helped you in understanding the problem Pls upvote the ans if it has really helped you. Good Luck!!

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