Suppose that the value of R2 for an estimated regression model is exactly zero. Which of the following are true?
A. All coefficient estimates on the slopes will be zero
B. The fitted line will be horizontal with respect to all of the explanatory variables
C. The regression line has not explained any of the variability of y about its mean value
D. The intercept coefficient estimate must 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 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.