Prove that the adjusted R 2 in (3-30) rises (falls) when variable x k is deleted from

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Prove that the adjusted R² in (3-30) rises (falls) when variable x_k is deleted from the regression if the square of the t ratio on x_k in the multiple regression is less (greater) than 1.

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Econometric Analysis

ISBN: 978-0131395381

7th edition

Authors: William H. Greene

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Question Posted: Nov 14, 2018 08:59 AM

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Prove that the adjusted R 2 in (3-30) rises (falls) when variable x k is deleted from

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Let denote the adjusted R 2 in the full regression on K variables including x k and letdenote the ad...View the full answer

Econometric Analysis

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