Assume we had four independent variables—x1, x2, x3 and x4—that were used to pre
ID: 3022138 • Letter: A
Question
Assume we had four independent variables—x1, x2, x3 and x4—that were used to predict y. Assume also that the predicted y values are represented by . State whether each of the following is true or false and why:
Regressing x1, x2, x3 and x4 on y would give the same R-squared values as regressing y on .
b) Adding another predictor, x5, will always increase the adjusted R-squared value.
c) y cannot be a dichotomous variable in multiple linear regression model, but the x’s can
d) If the model is a good fit, then y- will be high.
e) High correlations among the x’s will increase the value of R-squared.
Explanation / Answer
a) False as fifth variable may lie on regression line which will not affect the value of R
b) False Y can also be dichotomous varibale depending upon the data set.
c) False Y-Y^ value decreases as the model is good
d) True As R suqred is values of correlation so more the correlation more will be its value.