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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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