Question #25

Reading: Reading 1 Multiple Regression

PDF File: Reading 1 Multiple Regression.pdf

Page: 11

Status: Unattempted

Correct Answer: A

Part of Context Group: Q25-27 First in Group
Shared Context
- The adjusted R2 of Model 2 is closest to: A) 0.39. B) 0.37. C) 0.36.
Question
The model better suited for prediction is:
Answer Choices:
A. Model 1 because it has a lower Bayesian information criterion
B. Model 2 because it has a higher Akaike information criterion
C. Model 2 because it has a lower Akaike information criterion
Explanation
The Akaike information criterion (AIC) is used if the goal is to have a better forecast, while the Bayesian information criterion (BIC) is used if the goal is a better goodness of fit. Lower values of both criteria indicate a better model. Both criteria are lower for Model 2.
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