Question

When additional independent variables are added to a simple linear regression, the coefficient of determination, R2 may __________.

A. increase or stay the same
B. become negative
C. decrease or stay the same
D. stay the same

Answer 1

Option A) increase or stay the same

Explanation:

Coefficient of Determination:

• It is interpreted as the proportion of the variance in the dependent variable that is predictable from the independent variable.

• The coefficient of determination is the square of the correlation between predicted y scores and actual y scores.
• If coefficient of determination is 0 means that the dependent variable cannot be predicted from the independent variable.

• If coefficient of determination is 1 means the dependent variable can be predicted without error from the independent variable.

• One problem with the coefficient of determination is that it always increases whenever we add a new independent variable

Thus, option A) is the correct answer.