The Value of R² Always Goes Up When a Nontrivial

question 47

True/False

The value of R² always goes up when a nontrivial explanatory variable is added to a regression model.

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Definitions:

Marketable Securities

Financial instruments and assets that can be easily converted into cash, often with a maturity of less than a year, such as stocks or bonds.

Intangible Assets

Long-term assets that are useful in the operations of a business, are not held for sale, and are without physical qualities.

Gross Profit Margin

A financial ratio that shows the percentage of sales revenue remaining after deducting the cost of goods sold from total sales revenue.

Vertical Analysis

A financial statement analysis method that shows the relationship of each component to a total within a single statement, expressed as a percentage.