Which of the following is an advantage of using stepwise regression compared to just entering all the independent variables at one time?
A) Stepwise will generally produce a model with a larger R-square value.
B) The standard error of the estimate for a model constructed with stepwise regression will be larger than the one generated when all variables are entered at the same time.
C) The stepwise regression allows the decision maker to observe the effects of multicollinearity more easily than when all the variables are entered at one time.
D) There are no advantages of using stepwise regression over entering all variables at one time.

Question

Quizplus · Accepted Answer

Stepwise regression helps in identifying the significance of individual variables more clearly by adding or removing them one at a time, which can make the effects of multicollinearity (when independent variables are highly correlated with each other) more observable compared to entering all variables simultaneously. This process does not necessarily lead to a model with a larger R-square (A is incorrect), nor does it aim to increase the standard error of the estimate (B is incorrect). Saying there are no advantages (D) dismisses the method's utility in exploratory analysis and model simplification.

Which of the Following Is an Advantage of Using Stepwise