Adjusted R² vs R² - Quant Trader Interview Question
Difficulty: Easy
Category: Statistics & Regression
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Topics: statistics, regression, r-squared, adjusted-r-squared
Problem Description
You are building a linear regression model to predict the price of a stock based on various economic indicators. You want to understand the difference between using the regular R² and the adjusted R². Which of the following statements best describes the key distinction between R² and adjusted R²?
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