In Multiple Regression, the R² Increases Whenever a Regressor Is

question 65

Multiple Choice

In multiple regression, the R² increases whenever a regressor is

• A)added unless the coefficient on the added regressor is exactly zero.
• B)added.
• C)added unless there is heterosckedasticity.
• D)greater than 1.96 in absolute value.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all finished goods and services produced within a country's borders in a specific time period.

Military Aircraft

Aircrafts designed for use in warfare, including fighters, bombers, and transport planes.

GDP Deflator

A gauge for assessing the price rates of all new, locally manufactured, end goods and services in a country, applied to recalibrate nominal GDP to real GDP.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size and how it’s growing over time.