In a Multiple Regression Model, Which of the Following Is

question 42

Multiple Choice

In a multiple regression model, which of the following is true?

• A) The coefficient of determination will be equal to the square of the highest correlation in the correlation matrix.
• B) Adding variables that have a low correlation with the dependent variable will cause the R-square value to decline.
• C) The sum of the residuals computed for the least squares regression equation will be zero.
• D) The adjusted R-square might be higher or lower than the value of the R-square.

---

Definitions:

Future Value

The value of an investment at a specific date in the future, accounting for factors like interest rates and compounding.

Annual Inflation Rate

The percentage increase in the price of goods and services over a one-year period, reflecting the purchasing power of a currency.

Automobiles

Motor vehicles with four wheels designed primarily for passenger transportation on roads.

Simple Interest

Interest computed solely on the initial amount of a loan or deposit, not taking into account the effects of compounding.