Comparing R-sqaured in Multiple Regressions
For 2 multiple regressions models (same dependent variables), can we compare the R-squared directly to see which model is better? If so, as long as I can get lower R-squared by including more independent variables, that should be ok, right?
February 4th, 2009 in
CFA - LEVEL 2, Question Posted by maser
For mulitple regression, you have to use adjusted R squared. I forgot the equation. You may look up in the web…
Maser, you can find the adjusted R-squared equation here: http://minute-class.com/finance/multiple-liner-regression/