In a Multiple Regression Analysis,the Current Model Has Three Independent

question 111

Multiple Choice

In a multiple regression analysis,the current model has three independent variables.The analyst decides to add another (fourth) independent variable from the same data set while retaining the other three independent variables.As a result of this addition,the value of explained variation will ____________ decrease.

• A)always
• B)sometimes
• C)never

---

Definitions:

Credit Sales

Credit sales are transactions where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Liability Classification

The process of categorizing liabilities on the balance sheet as either current (due within one year) or long-term.

Short-Term Obligation

A debt or other financial obligation that is due to be paid within one year or within the entity's operating cycle if longer.

Long-Term Liability

Obligations or debts due in more than one year, reflecting a company's financing activities and including loans, bonds payable, and lease obligations.