In Multiple Regression, Will Use of a Second Predictor Variable

question 32

Short Answer

In multiple regression, will use of a second predictor variable always increase the accuracy of prediction? Explain.

---

Definitions:

Dividends Increasing

A situation where a company decides to increase the amount of money paid out to its shareholders from its profits.

Market Rate

The prevailing interest rate available in the marketplace for loans and investments, often influenced by central bank rates, inflation, and market demand.

Annual Dividend

The yearly total of dividend distributions made by a company to its shareholders.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends paid to shareholders.