3. (20pt) We have 4 independent variables X1, X2.3 and X4. The table as below pr

Question

3. (20pt) We have 4 independent variables X1, X2.3 and X4. The table as below provides R2 adjusted R and BIC of 15 different OLS models. Column Independent variables" ncludes the set of independent variables contained in each OLS regression. Independent variables RAdj RBIC 0.00110.0010 823.049 0.1616 0.1574 788.009 0.52740.5250 673.3828 0.0047 0.0040 822.3285 0.1618 0.1533 793.2606 0.5342 0.5294 675.7815 0.0059 0.0050 827.3785 0.6766 0.6733 602.8175 0.16750.1590 791.9065 0.5426 0.5379 672.1306 0.6806 0.6757 605.5908 0.1677 0.1550797.1405 0.5502 0.5433 674.084 0.6936 0.6889 597.2843 0.6983 0.6921 599.4996 X1,X2 X2,X3 X1,X2,X3 X1, X2,X4 X1,X3,X4 X1,X2,X3,X4

Explanation / Answer

here using FORWARD SELECTION

first select that single covariate {only X1 or only X2 or only X3 or only X4}that has maximum value as R square i.e M1:   X3

step 2 :then taking X3  among

X1,X3

X2,X3

X3,X4

maximum value of R square is by M2 : X2,X3

step 3

now keeping X2,X3 fixed

choosing among

X1,X2,X3

X2,X3,X4

R square value is greater in M3: X2,X3,X4

step 4:

also taking M4 as X1,X2,X3,X4

now looking at the BIC values it decreses in the order

BIC(M1)>BIC(M2)>BIC(M3)> BUT NOT FOR M4

SO OUR REQUIRED MODEL BY APPLYING FORWARD SELECTION IS M3: X2,X3,X4

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.