Question
Suppose that you are investigating the relationship between the dependent variable Y and two potential explanatory variables, X 1 and X 2 .We will compare
Suppose that you are investigating the relationship between the dependent variable Y and two potential explanatory variables, X1and X2.We will compare the R2value for the multiple regression model with both X variables included (Model 1:Y = b0+ b1X1+b2X2) to the two separate simple regression models built using X1(Model 2:Y = b0'+ b1'X1)and X2(Model 3:Y = b0''+ b1''X2) separately.
(a) Is it possible for the R2for Model 1 to be lower than those of Model 2 and Model 3?Explain why or why not.
(b) Is it possible for the R2for Model 1 to be larger than thesumof R2values from Models 2 and 3?Explain why or why not.
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