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QUESTION 4 In Multivariate Linear Regression, adding more independent variables might cause the adjusted R squared...

QUESTION 4

  1. In Multivariate Linear Regression, adding more independent variables might cause the adjusted R squared to fall in some cases

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    False

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Answer #1

TRUE, In multivariate Linear regression , adding more independent variables might cause the adjusted R squared to fall in some cases. WE can see it by formulalae given below :

R2( adjusted) = 1 - (1-R2) *[n-1]/[n-(k+1)], n= sample size and k = no of independent variables

clearly changing no. of idependent variables (k) might cause fall in adjusted R2.

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