For the regression model, Yi = b1X1i + b2X2i + a + ei, consider the following two situations:
Situation 1: rY1 = -0.5 rY2 = 0.8 r12 = 0.1
Situation 2: rY1 = -0.5 rY2 = 0.8 r12 = 0.3
In which of the two situations will R2 be larger?
A) situation 1.
B) situation 2.
C) R2 will be the same in both situations.
D) uncertain.
Correct Answer:
Verified
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