The LOS simply say to distinguish between and interpret the R^2 and Adjusted R^2 formula. I don’t see any LOS that say we need to calculate Adjusted R^2, but over and over again I see examples in the Schweser text that require memorization of the formula.
Could anyone please shed some light on this?
Thanks,
Clark
stick with the LOS wording. if, come May, you know all the formulas from the LOSs that require you to ‘calculate’, then i suppose you could could add the one about adjusted R2 to your arsenal. until then, stick with ‘distinguish’ and ‘interpret’.
I wouldn’t waste time memorizing this formula. All you really need to remember is that Adjusted R^2 will be less than R^2.
That is incorrect, it will always be less than or EQUAL to r^2, and the formula isn’t that bad 1- (n-1)/(n-k-1) x 1-r^2. there are certainly much worse formulas they could test. If you just start a formula sheet, you should only really need about 30 or so.