There are four statements below. Which one of them is true? a. The coefficient of determination ( R 2 ) decreases when an independent variable
There are four statements below. Which one of them is true?
a. | The coefficient of determination (R2) decreases when an independent variable is added to a multiple regression model. | |
b. | A larger error variance makes it difficult to estimate the partial effect of any of the independent variables on the dependent variable. | |
c. | A larger variance for a coefficient (βj) means a more precise estimator. | |
d. | The key assumption for the general multiple regression model is that all factors in the unobserved error term are correlated with the explanatory variables. |
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