Even When an Unimportant Variable Is Added to a Regression

question 61

True/False

Even when an unimportant variable is added to a regression model, the explained variation will increase.

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Definitions:

Ethnic Groups

Communities of people who share common cultural characteristics, including language, religion, ancestry, or cultural traits.

Reputational Risk

The potential for loss resulting from damages to a firm's reputation, affecting its ability to maintain current or attract new customers, partners, and employees.

Great Britain

An island in the North Atlantic Ocean off the northwest coast of continental Europe, comprising England, Scotland, and Wales, and forming the largest portion of the United Kingdom.

European Union

A political and economic union of 27 European countries that are committed to regional integration and economic cooperation among its member states.