42

An analyst gathers the following summary of the goodness-of-fit measures for a dependent variable regressed on alternative sets of factors:

Independent Variables	Adjusted $R^2$	Akaike's Information Criterion (AIC)	Schwarz's Bayesian Information Criterion (BIC)
Model 1: Factor 1	0.631	13.156	14.990
Model 2: Factors 1 and 2	0.652	14.287	15.189
Model 3: Factors 1, 2, and 3	0.648	12.463	16.397

Which of the models should be preferred for prediction purposes?