# Econometric Explain why it is

Econometric

Explain why it is dangerous to judge the quality of a regressionmodel by maximizing R^2?

You are encouraged to use a hypothetical example in answeringthis question. (Your answer should be more than 2 sentenceslong).

R-squared is the percentage of the dependent variable variationthat the model explains. The value in your statistical output is anestimate of the population value that is based on your sample. Likeother estimates in inferential statistics, you want your R-squaredestimate to be close to the population value.

There are situations where the R2in your output is much higherthan the correct value for the entire population. Additionally,these conditions can cause other problems, such as misleadingcoefficients. Consequently, it ispossible to have anR-squared value that is too high even though that soundscounter-intuitive.

High R2 values are not always a problem. In fact, sometimes youcan legitimately expect very large values. For example, if you arestudying a physical process and have very precise and accuratemeasurements, it’s possible to obtain valid R-squared values in thehigh 90s.

On the other hand, human behavior inherently has much moreunexplainable variability, and this produces R2 values that areusually less than 50%. 90% is way too high in this context!

##### "Our Prices Start at \$11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat