True or False: When an Additional Explanatory Variable Is Introduced

question 56

True/False

True or False: When an additional explanatory variable is introduced into a multiple regression
model, the adjusted r2 can never decrease.

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Investment Turnover

A measure of a company's efficiency in using its investments to generate sales, calculated as sales divided by the average value of investments.

Profit Margin

The percentage of revenue that remains as profit after all expenses have been subtracted from sales.