When an explanatory variable is dropped from a multiple regression model, the adjusted can increase.

Question

When an explanatory variable is dropped from a multiple regression model, the adjusted  can increase.

Quizplus · Accepted Answer

When a variable is dropped, the adjusted R-squared may increase because the model becomes simpler and more parsimonious, which can lead to a better fit for the remaining variables. This can occur if the dropped variable had a low contribution to the model's explained variance or if it was highly correlated with other variables in the model, causing multicollinearity issues. Removing it may improve the overall fit of the model and increase the adjusted R-squared.

When an Explanatory Variable Is Dropped from a Multiple Regression