Regression Model Fit
Free CFA Level II lesson in Quantitative Methods. 12 min read, ~1,833 words.
R-squared never decreases when you add a variable, it rewards complexity, not quality. Adjusted R-squared penalizes for each additional variable; use it to compare models of different sizes. AIC and BIC: lower = better. BIC penalizes complexity more heavily (ln(n) per parameter vs 2). Partial F-test evaluates whether a group...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- regression model fit
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