By Including Another Variable in the Regression, You Will A Decrease

question 27

Short Answer

By including another variable in the regression, you will a. decrease the regression $R ^ { 2 }$ if that variable is important.
b. eliminate the possibility of omitted variable bias from excluding that variable.
c. look at the $t$ -statistic of the coefficient of that variable and include the variable only if the coefficient is statistically significant at the $1 \%$ level.
d. decrease the variance of the estimator of the coefficients of interest.

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Definitions:

Compromising

A conflict resolution strategy that involves finding a middle ground or mutually acceptable solution that somewhat satisfies both parties.

Win-lose

A competitive scenario where one party's gain is exactly balanced by another party's loss.

Implementing Agreement

The act of putting into practice or executing the terms and conditions of a settled deal or consensus.

Responsibilities

Duties and tasks that an individual or entity is required to perform or oversee.