CFA Practice Question

There are 363 practice questions for this topic.

CFA Practice Question

Which of the following statements is most accurate?

A. The best-fitting model is the regression model with the highest adjusted R2 and low BIC and AIC.

B. The best-fitting model is the regression model with the lowest adjusted R2 and high BIC and AIC.

C. The best-fitting model is the regression model with both high adjusted R2 and high BIC and AIC.

Correct Answer: A

A regression model with a high adjusted R2 and a low AIC and BIC will generally be the best fit.

B and C are incorrect. The best-fitting regression model generally has a high adjusted R2 and a low AIC and BIC.

User Contributed Comments 0

You need to log in first to add your comment.