Question
Suppose you estimate a Linear Regression with quantity of computer sales as the dependent variable and price, income, and the number of new video game
Suppose you estimate a Linear Regression with quantity of computer sales as the dependent variable and price, income, and the number of new video game releases as independent variables. From this Linear Regression, you get an Adjusted R-squared of 0.4299. When you remove the number of new video game releases as an independent variable in the Linear Regression, the Adjusted R-squared is 0.4557. What does this indicate?
Group of answer choices
a) Including the number of new video game releases as an independent variable improves the Goodness-of-Fit as measured by Adjusted R-squared
b) Adding the number of new video game releases as an independent variable must decrease R-squared
c) The number of new video game releases doesn't contribute very much to the Goodness-of-Fit of the Linear Regression
d) The coefficient on the number of new video game releases must be statistically significant at the 5% level
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