Mathematics · Statistics & Econometrics
Given below are two statements labeled as Assertion (A) and Reason (R). Read the statements and answer the question that follows: Assertion (A): The addition of independent variable(s) to a regression model generally causes the prediction error to become smaller or remain same. Reason (R): With the addition of independent variables, the coefficient of determination (R2) increases or remains same, which helps reduce the standard error of prediction. Which of the following options is correct?
- 1Both statements are correct and (R) is the correct explanation of (A)✓
- 2Both statements are true and (R) is not the correct explanation of (A)
- 3Statement (A) is correct and Statement (R) is incorrect
- 4Statement (R) is correct and Statement (A) is incorrect
Correct answer
Both statements are correct and (R) is the correct explanation of (A)
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