Question: Answer the following two questions using this table. The table summarizes the results of 5 different regression models with 4 candidate variables. Variable X1 X2

Answer the following two questions using thisAnswer the following two questions using this

Answer the following two questions using this table. The table summarizes the results of 5 different regression models with 4 candidate variables. Variable X1 X2 X3 X4 R2 Adjusted R2 0.66 0.8 0.82 Not Not Not Model 1 Included 0.65 included included included Not Not Model 2 Included Included included included Not Model 3 Included Included Included 0.67 included Not Model 4 Included Included Included 0.82 included Model 5 Included Included Included Included 0.84 0.67 0.81 0.8 Based on the table, which of the following statements are false? 1. Adding a new variable to a regression model always increases R2. II. Adding a new variable to a regression model may not increase adjusted R2. III. A model with higher number of variables would have higher R2. IV. A model with all candidate variables will always have the highest R2. I and II II and III I, III and IV Only III III and IV

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