If an independent variable is added to a multiple regression model, the R-squared value:
a. Becomes larger or smaller depending on the statistical significance of the variable
b. Becomes larger even if the variable added is not statistically significant
c. Might or might not become larger even if the variable added is statistically significant
d. Is not affected by the variable added even if it is statistically significant



Answer :

C. May or may not increase in size even if the added variable has statistical significance.

The R-squared value measures the proportion of variance in the dependent variable that is explained by the model, including the independent variable.

Therefore, if an independent variable is added to the model and it is statistically significant, then it will increase the R-squared value. However, if the variable added is not statistically significant, then it will not have an effect on the R-squared value.

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