Question 66
What is the Adjusted R-squared metric in multiple linear regression?
Original solution basis:
Standard R^2 always increases when adding features. Adjusted R^2 penalizes non-informative features: 1 - [(1 - $R^2)(n - 1) / (n - p - 1)$].
Deep Dive
Adjusted R² corrects ordinary R² for the number of predictors. With n observations and p predictors (excluding the intercept), it is 1-[(1-R²)(n-1)/(n-p-1)]. Unlike ordinary R², adjusted R² can decrease when an added predictor does not improve fit enough to justify the lost degrees of freedom.
Key Points to Remember:
• Adjusted R² = 1-[(1-R²)(n-1)/(n-p-1)].
• p counts predictors, not the intercept.
• Adjusted R² penalizes unnecessary predictors; it can be lower than ordinary R².
Exam tip:
Identify the governing definition or theorem first, write the formula, substitute the given values, and check dimensions/signs before selecting the option.