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Eduncle posted an MCQ
March 03, 2020 • 00:07 am 0 points
  • UGC NET
  • Management

Given below are two statements labelled as Assertion (A) and Reason (R). Read the statements and answer the question that follows: 

Assertion (A) : The addition of independent variable(s) causes the predictions error to become smaller
Reason (R) : With addition of independent variable, R2 becomes larger to cause smaller prediction error
Which of the following option is correct?

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    Eduncle Best Answer

    Coefficient of Determination (R-squared) equal to 0 means that the dependent variable cannot be predicted using the independent variable. Conversely, if it equals 1, it means that the dependent of a variable is always predicted by the independent variable. So, with the addition of independent variable R2 become larger to cause smaller prediction error.

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