Mathematics, 03.04.2021 21:40 ctyrector
An analyst observes a positive relationship between digital marketing expenses and online sales for a firm. However, she intuitively feels that she should add an additional predictor variable, one which has a high correlation with marketing expenses.
If the analyst adds this independent variable to the model, which of the following could happen? More than one choices could be correct.
Options -
1)The model’s R-squared will decrease
2)The model’s adjusted R-squared could decrease
3)The Beta-coefficient for predictor - digital marketing expenses, will remain same
4)The relationship between marketing expenses and sales can become insignificant
Answers: 1
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