When an Explanatory Variable Is Dropped from a Multiple Regression

question 88

True/False

When an explanatory variable is dropped from a multiple regression model,the coefficient of determination can increase.

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Definitions:

Output

The amount of something produced by a person, machine, or industry.

Average Cost

The total cost divided by the quantity produced, measuring how much on average each unit of output costs to produce.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Average Variable Cost

The total variable cost divided by the quantity of output produced, indicating the variable cost of producing each unit of output.