Adding More Control Variables Will Always Increase the R² Value

question 12

True/False

Adding more control variables will always increase the R² value.

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Definitions:

Capital Acquisitions Ratio

A financial metric that compares total acquisitions of property, plant, and equipment with cash flow from operating activities, indicating the extent to which operating cash flows are used to finance capital expenditures.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.

Comparative Balance Sheets

Comparative balance sheets present the financial position of a business at different points in time, allowing for analysis of trends and changes.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not included in cash equivalents.