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E20-007 · Question #81

Refer to the exhibit. You have run a linear regression model against your data, and have plotted true outcome versus predicted outcome. The R-squared of your model is 0.75. What is your assessment…

The correct answer is D. The R-squared may be biased upwards by the extreme-valued outcomes. Remove them and. See the full explanation below for the reasoning.

Question

Refer to the exhibit. You have run a linear regression model against your data, and have plotted true outcome versus predicted outcome. The R-squared of your model is 0.75. What is your assessment of the model?

Exhibit

E20-007 question #81 exhibit

Options

  • AThe observations seem to come from two different populations,but this model fits them both
  • BThe R-squared is good. The model should perform well.
  • CThe extreme-valued outliers may negatively affect the model's performance. Remove them to
  • DThe R-squared may be biased upwards by the extreme-valued outcomes. Remove them and

How the community answered

(22 responses)
  • A
    14% (3)
  • B
    5% (1)
  • C
    5% (1)
  • D
    77% (17)

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