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Basic Question 10 of 11

Given SSE = 30, SST = 120, n = 18, k = 3, compute adjusted R2.

User Contributed Comments 3

User Comment
danlan2 Adjusted R^2
=1-(n-1)*SSE/((n-k-1)*SST)
=1-17*30/(14*120)=39/56
=0.6964
MasterD Adjusted R^2 == Rbar^2

Rbar^2 = 1 - (n-1)/(n-k-1) * [1-R^2]

Substitute R^2 = 1-SSE/SST you get

Rbar^2 = 1 - (n-1)/(n-k-1) * [1-(1-SSE/SST)]
= 1 - (n-1)/(n-k-1) * [SSE/SST]

Rbar^2 = 1 - (n-1)/(n-k-1) * [SSE/SST]
= 1 - (18-1)/(18-3-1) * [30/120]
= 0.6964
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Edward Liu

Learning Outcome Statements

evaluate how well a multiple regression model explains the dependent variable by analyzing ANOVA table results and measures of goodness of fit;

CFA® 2025 Level II Curriculum, Volume 1, Module 2.