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comparison of regression models

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Overheard at the water cooler: My regression model of demand is better than the one that the consultant prepared for us because it has a higher R2. Besides, my equation has three more independent variables and so is more complete then the consultant's. Comment on this statement. Would you agree with the speaker? Explain.

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The correlation coefficient, or R squared, measures the measures the strength of the linear association between a dependent and a number of independent variables. Increasing the number of independent variables in a multiple regression will generally increase the R^2, but it isn't a good way to do it. ...

Solution Summary

Comparison of regression models based on R squared.

$2.19