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Which models meet the criterion for further consideration
Course:- Macroeconomics
Reference No.:- EM13208444




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consider four independent variables for inclusion in a regression model. Select a sample of 30 observations. Results: 1. the model includes independent variables A and B and has a Cp value equal to 4.6. 2. the model that includes independent variables A and C has a Cp value equal to 2.4. 3. the model that includes independent variables A, B and C has a Cp value equal to 2.7.

a. which models meet the criterion for further consideration? explain.

b. how would you compare the model that contains independent variables A, B and C to the model that contains independent variables A and B? explain




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