The Adjusted Coefficient of Determination (adjusted R²) is related to unadjusted R² by the formula:

Adjusted R² is obtained by dividing each sum of squares by its degrees of freedom, so that unbiased estimates of the variances are used: Adj R² = 1 - [RSS/(n - k - 1)]/[TSS/(n - 1)] = 1 - (RSS/TSS) × (n - 1)/(n - k - 1) = 1 - (1 - R²) × (n - 1)/(n - k - 1) Here n is the number of observations and k is the number of explanatory variables (slope coefficients), so n - k - 1 is the residual degrees of freedom. Example: for R² = 0.80, n = 20 and k = 3, Adj R² = 1 - 0.20 × (19/16) = 1 - 0.2375 = 0.7625 The adjusted value is lower than R² and, for k ≥ 1, it never exceeds it. Hence the correct option is (B).