Asked by Kevin Lawson on Jun 25, 2024
Verified
If a variable is removed from the regression model when the t-statistic is greater than 1,________.
A) the standard error will decrease
B) the p-value will decrease
C) the Adjusted R2 square will decrease
D) the Multiple R will decrease
T-statistic
A type of statistic used in hypothesis testing, calculated by standardizing a sample mean difference given its sample standard deviation.
Standard Error
A statistical measure that quantifies the variability or dispersion of a sample statistic from the population parameter it estimates.
Adjusted R Square
A statistical measure that indicates the proportion of variance in the dependent variable that is predictable from the independent variables, adjusted for the number of predictors in the model.
- Acquire insight into the methods and guidelines for selecting and simplifying multiple regression models.
Verified Answer
LS
Lakeraj SeepersaudJun 27, 2024
Final Answer :
C
Explanation :
Removing a variable when the t-statistic is greater than 1 typically means that the variable is statistically significant. Removing such a variable can lead to a decrease in the adjusted R-squared because this statistic adjusts for the number of variables in the model relative to the number of observations, aiming to penalize for adding variables that do not improve the model significantly.
Learning Objectives
- Acquire insight into the methods and guidelines for selecting and simplifying multiple regression models.