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Questions › UGC-NET › UGC-NET 2025 › Q74
2 marksEconometrics › Goodness of fit and model selection › Adjusted R-squared and model comparisonModerateabout 1 min

UGC-NET 2025 Question 74: Goodness of fit and model selection

The Coefficient of Determination (R2R^2R2):

A. is an increasing function of the number of regressors
B. is a decreasing function of the number of regressors
C. is unaffected by increasing or decreasing the number of regressors
D. is always positive

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Plain-text version

The Coefficient of Determination (R²): A. is an increasing function of the number of regressors B. is a decreasing function of the number of regressors C. is unaffected by increasing or decreasing the number of regressors D. is always positive (A) A and B only (B) A and C only (C) A and D only (D) B and C only

Also written as: The Coefficient of Determination (R^2): A. is an increasing function of the number of regressors B. is a decreasing function of the number of regressors C. is unaffected by increasing or decreasing the number of regressors D. is always positive

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

What this question tests

This question is on Adjusted R-squared and model comparison, part of Goodness of fit and model selection in Econometrics.

Penalising extra regressors and when R-squared can be compared across models.

TestStop has 7 past-paper questions on this subtopic; the nearest in year are below.

  • IIT JAM 2022 · Q27Which of the following is NOT correct regarding R-squared (R²) and adjusted R-squared (R̄²)?
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Question from the UGC-NET 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.