CAS Exam MAS-I Fall 2018, Question 30
Study guide: Exam MAS-I
An actuary uses statistical software to run a regression of the median price of a house on 12 predictor variables plus an intercept. He obtains the following (partial) model output:
- Residual standard error: 4.74 on 493 degrees of freedom
- Multiple R-squared: 0.7406
- F-statistic: 117.3 on 12 and 493 DF
- p-value: < 2.2e-16
Calculate the adjusted R^2 for this model.
- A) Less than 0.70
- B) At least 0.70, but less than 0.72
- C) At least 0.72, but less than 0.74
- D) At least 0.74, but less than 0.76
- E) At least 0.76
Answer this question and see the worked solution