The coefficient of determination (r2) for a regression equation with one independent variable (X1) is 0.63. A second independent variable (X2) is added to the equation, and the coefficient of determination changes to 0.64. Which of the following would we conclude?
A) Together, X1 and X2 explain only about 40% of the variability in the dependent variable.
B) X2 contributes little over and above the effect of X1 to our ability to understand variability in the dependent variable.
C) Adding X2 increases our ability to understand variability in the dependent variable by a considerable margin.
D) X2 intervenes between X1 and the dependent variable.
Correct Answer:
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