Bigger Samples Boost Regression Accuracy, Unlocking Insights for Impactful Decisions
The research looked at how different sample sizes affect the accuracy of multiple regression models. They used a virtual community with 500 observations to test this. They found that as the sample size increased, the accuracy of the regression models improved. The best results were seen with a sample size of 225, with an R2 value of 43%. It was also noted that relying on just one indicator to judge the quality of the models is not enough, and using larger samples is recommended for better accuracy.