A high value of R² significantly above 0 in multiple regression accompanied by insignificant t-values on all parameter estimates very often indicates a high correlation between independent variables in the model.

Question

Quizplus · Accepted Answer

A high value of R² indicates that the model explains a significant amount of variation in the dependent variable. However, if the t-values on all parameter estimates are insignificant, it suggests that none of the independent variables are individually making a significant contribution to the model. This could occur if there is high correlation between independent variables, which can lead to inflated R² values and difficulty in interpreting parameter estimates.

A High Value of R² Significantly Above 0 in Multiple