Which of the following indicators will always improve when more variables are added to a regression equation? A)the magnitudes of the coefficients B)the t-test C)R² D)the standard errors of the coefficients

Question

Quizplus · Accepted Answer

The correct choice is C, which refers to R-squared (R²). R-squared always increases when more variables are added to a regression model, regardless of whether those variables are significant predictors of the outcome variable. This is because R-squared measures the proportion of the variance in the dependent variable that is predictable from the independent variables, and adding more variables can only increase or leave unchanged this proportion, even if the new variables have very little explanatory power.

Which of the Following Indicators Will Always Improve When More