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Questions › DSE › DSE 2014 › Q48
2 marks, −0.666666666666667Econometrics › Goodness of fit and model selection › R-squared and the coefficient of determinationModerateabout 2 min

DSE 2014 Question 48: Goodness of fit and model selection

Consider the least squares regression of yyy on a single variable xxx. Which statement is true?

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Consider the least squares regression of y on a single variable x. Which statement is true? (A) R² always equals the squared correlation coefficient between y and x (B) R² equals the squared correlation only if there is no intercept (C) R² equals the squared correlation only if there is an intercept (D) There is no relationship between R² and the squared correlation

Goodness of fit and model selection has come up 27 times in 6 exams since 2009.

What this question tests

This question is on R-squared and the coefficient of determination, part of Goodness of fit and model selection in Econometrics.

The share of variation in the dependent variable that the regression explains.

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Question from the DSE 2014 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.