Consider a model where the R-squared is zero. Which of the following statements is true ?
A. The estimated slope coefficients will be zero.
B. The fitted line will be horizontal.
C. The explanatory variables do not explain any of the variability in the outcome variable around its mean value.
D. The estimated intercept coefficient will be zero.
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Goodness of fit and model selection has come up 27 times in 6 exams since 2009.
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 JNU SIS 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.