The R^2 can only increase when extra explanatory variables are added to a multip
ID: 3149998 • Letter: T
Question
The R^2 can only increase when extra explanatory variables are added to a multiple regression model For the multiple regression model y = 40 + 15x_1 - 10x_2 + 5x_1, if x_2 were to increase by 5 units, holding x_1 and x_3 constant, the value of Y would be expected to decrease by 50 units. We should include an interaction variable in a regression model if we believe that the effect of one explanatory variable X_1 on the response variable Y depends on the value of another explanatory variable X_2 The adjusted R^2 is used primarily to monitor whether extra explanatory variables really belong in a multiple regression model Models such as moving average, exponential smoothing, and linear trend use onlyExplanation / Answer
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Question 23
True
If now explanatory variable matrix is X1 then interaction terms matrix is X2
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