If a variable is removed from the regression model when the t-statistic is greater than 1,________. A)the standard error will decrease B)the p-value will decrease C)the Adjusted R² square will decrease D)the Multiple R will decrease

Question

Quizplus · Accepted Answer

Removing a variable when the t-statistic is greater than 1 typically means that the variable is statistically significant. Removing such a variable can lead to a decrease in the adjusted R-squared because this statistic adjusts for the number of variables in the model relative to the number of observations, aiming to penalize for adding variables that do not improve the model significantly.

If a Variable Is Removed from the Regression Model When