Choose the best answer from the following: i) Model 1 is better than model 2 bec
ID: 3367008 • Letter: C
Question
Choose the best answer from the following:
i) Model 1 is better than model 2 because it has a smaller value of S and a larger R-Squared value. Model 1 with the variables age, agesq and hours worked The regression equation is Earnings-775 146 Age - 1.65 agesg 94.5 Hours Worked Predictor Constant Age agesq Hours Worked Coef SE Coef 775.0 145.81 614.0-1.26 0.233 51.972.81 0.017 1.64640. 6412 -2.57 0.026 78.281.21 0.253 94.50 S 452.363 R-Sq 73.9% R-Sq ( adj ) -66.8% - - Model 2 with the variables age and ages The regression equation is Earnings-652 192 Age - 2.22 agesq Predictor Constant Age agesq Coef SE Coef 617.0-1.06 0.311 36.215.29 0.000 2.22090.4377-5.070.000 652.3 191.59 S 460.900 R-Sg 70.4% R-Sg (adj ) -65.5% - -Explanation / Answer
The correct choices will be ii) and iii) because hours worked variable is not needed and the values of s and R-square is changing slightly.
Hence,
Option iv) is correct.