19831985

Dreary

Thanks for correcting the formula.

I only have Schweser Notes of 2009.

I see on Pg 187 in the middle of the page..

they make the following statement:
1. when there is more than 1 indep. var - adj_R^2 <= R^2
2. Adding an indep. variable may increase R^2.
If R^2 increased - Ra^2 (given the (1-r^2) in the formula) would decrease.
But if R^2 decreased - Ra^2 might increase.

If R^2 gets low enough -> Ra^2 may be negative or even 0.

So Ra^2 might increase or decrease.

CP