When an Explanatory Variable Is Dropped from a Multiple Regression

question 35

True/False

When an explanatory variable is dropped from a multiple regression model,the coefficient of multiple determination can increase.

---

Definitions:

Domestic Interest Rates

The rate of interest charged by banks on loans and offered on deposits within a country's borders.

U.S. Investors

U.S. investors refer to individuals or entities within the United States that allocate capital with the expectation of receiving financial returns, engaging in activities like stock market investment, bonds, real estate, and more.

Foreign Investment

Investment by individuals, companies, or governments in assets or businesses located in another country.

Swiss Francs

The currency of Switzerland, known for its strength and stability.