If stepwise procedure is used, a variable selected at an earlier step can be removed from the model if, in the presence of other variables, it no longer contributes significantly to explaining the variation in the dependent variable y.

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This statement is true. In stepwise regression, variables are added or removed from the model based on their contribution to explaining the variation in the dependent variable, and a variable that was selected earlier may be removed if it no longer explains significant variation in the presence of other variables.

If Stepwise Procedure Is Used, a Variable Selected at an Earlier