In a multiple regression setting which of the following statements is NOT correc

Question

In a multiple regression setting which of the following statements is NOT correct? Select one: a. As you add more explanatory variables the regression R-squared will not fall and typically will increase. b. Suppose you are interested in the relationship between food consumption and level of household income. Even though your primary interest is in the consumption-income relationship it is good practice to add in other explanatory variables such as household size in order to avoid problems of confoundment. c. The estimated intercept is the predicted outcome when all explanatory variables are set to zero. d. The standard error of the estimate needs to be large for a multiple regression model to be valid.

Explanation / Answer

Hence,

b. Suppose you are interested in the relationship between food consumption and level of household income. Even though your primary interest is in the consumption-income relationship it is good practice to add in other explanatory variables such as household size in order to avoid problems of confoundment.

This statement is not true.

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