If a New Independent Variable Is Added to a Regression

question 1

True/False

If a new independent variable is added to a regression equation, the adjusted R² increases only if the absolute value of the t statistic of the new variable is greater than one.

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Definitions:

Horizontal Summation

A method used to determine the total market demand or supply curve by adding individual demands or supplies at each price level, assuming they are compatible.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Nonrival

A characteristic of certain goods where consumption by one individual does not reduce the amount available for consumption by others.

Nonexclusive

A characteristic of a good or service that allows multiple users to use or consume it simultaneously without excluding others.