Exam Question – Statistics
4. What is the best answer given this information? (Briefly Explain Why)
Model 1
Model 2
Model 3
X-variables
6
4
3
R2
.9344
.9277
.8761
Adjusted R2
.9058
.9133
.8497
MSE
5867.53
5746.09
5844.78
Model 1 performs the best in all areas.
Model 3 performs better than Model 2.
We would most likely prefer Model 1.
We would most likely prefer Model 2.
We would most likely prefer Model 3.
5. The table below features three forecasting models used on the same set of data.
Model 1
Model 2
Model 3
Type
Exponential Smoothing
Regression
Seasonal & Trend
MSE
8755.3
4876.2
5945.8
Based solely on the information in this output, which of the following is the best answer? (Briefly Explain Why)
The data set contains no trend or seasonality.
The data set contains trend but no seasonality.
The data set contains seasonality but no trend.
The data set probably contains cyclicality.
The data set contains both trend and seasonality.
Solution Preview
4. Best here is a/. This because when you look at R2 of 0.9344 it means that approximately 93% of variation in the dependent variable can be explained by the model,
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