True or False: 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 (R-squared) significantly above 0 in multiple regression indicates a good fit for the model. However, if the t-values on all parameter estimates are insignificant, it means that none of the independent variables in the model are significant predictors of the dependent variable. This may be due to a high correlation between the independent variables, which can lead to instability in the parameter estimates and inflated standard errors. Therefore, a high R-squared value accompanied by insignificant t-values may indicate a high correlation between independent variables in the model.

True or False: a High Value of R2 Significantly Above

True or False: a High Value of R² Significantly Above