d) Adjusted R² can be larger than 1. e) sû is a measure of out-of-sample fit f) CV is a measure of out-of-sample fit Now consider the following two models: Y_{i}=\beta_{\mathbf{0}}+\rho_{\mathbf{1}} X_{i}+v_{i} Y_{i}=\beta_{0}+\beta_{1} X_{i}+\beta_{2} X_{i}^{2}+u_{i} and determine whether each of the following statements is true, falseor uncertain, and explainwhy: a) M1 has better out-of-sample fit than M2 b) The R2 will be higher for M1 than for M2 c) M2 and M1 are nested models d) I can test whether M1 and M2 are statistically different by testing for whether B1 = 0 e) The CV will be higher for M1

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