The R^2 can only increase when extra explanatory variables are added to a multip

Question

The R^2 can only increase when extra explanatory variables are added to a multiple regression model For the multiple regression model y = 40 + 15x_1 - 10x_2 + 5x_1, if x_2 were to increase by 5 units, holding x_1 and x_3 constant, the value of Y would be expected to decrease by 50 units. We should include an interaction variable in a regression model if we believe that the effect of one explanatory variable X_1 on the response variable Y depends on the value of another explanatory variable X_2 The adjusted R^2 is used primarily to monitor whether extra explanatory variables really belong in a multiple regression model Models such as moving average, exponential smoothing, and linear trend use only

Explanation / Answer

Answer: True

regression coefficient for x2 = -10

if x2 increases by 5 units , then change in Y is (-10)*5 = -50.

That is y decreases by 50 units.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.