For the regression model, Y_i = b₁X₁_i + b₂X₂_i + a + e_i, consider the following two situations:
Situation 1: r_Y₁ = ?0.5 r_Y₂ = 0.8 r₁₂ = 0.1
Situation 2: r_Y₁ = 0.2 r_Y₂ = 0.8 r₁₂ = 0.1
In which of the two situations will R² be larger?

Question

Quizplus · Accepted Answer

(R² is higher when there is a high correlation of the predictors with the dependent variable.)

For the Regression Model, Yi = B1X1i + B2X2i

For the Regression Model, Y_i = B₁X₁_i + B₂X₂_i