In a regression analysis, if a new independent variable is added and R-squared increases and adjusted R-squared decreases precipitously, what can be concluded?

A

• The new independent variable improves the predictive power of the regression model.

B

• The new independent variable does not improve the predictive power of the regression model.

C

• The regression was performed incorrectly. It is impossible for R-squared to increase and adjusted R-squared decrease simultaneously.

D

• The new independent variable's coefficient is not significant at the 0.01 level.