If You Rerun a Regression, Omitting a Predictor X₅, Which

question 105

Multiple Choice

If you rerun a regression, omitting a predictor X₅, which would be unlikely?

• A)The new R² will decline if X₅ was a relevant predictor.
• B)The new standard error will increase if X₅ was a relevant predictor.
• C)The remaining estimated β's will change if X₅ was collinear with other predictors.
• D)The numerator degrees of freedom for the F test will increase.

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Definitions:

Coffee

A beverage made from roasted and ground seeds of the coffee plant, known for its stimulating effect due to caffeine content.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than its competitors, leading to specialized production and trade.

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The ability of an entity to produce a good or service more efficiently than its competitors, using the same amount of resources.

Tariffs

Government levies on goods and services brought into the country, frequently employed to safeguard local industries against overseas rivals.