Instruction 13-7 You Decide to Predict Petrol Prices in Different Cities and Cities

Multiple Choice

Instruction 13-7
You decide to predict petrol prices in different cities and towns in Australia for your term project.Your dependent variable is price of petrol per litre and your explanatory variables are per capita income,the number of firms that manufacture automobile parts in and around the city,the number of new business starts in the last year,population density of the city,percentage of local taxes on petrol,and the number of people using public transportation.You collected data of 32 cities and obtained a regression sum of squares SSR = 122.8821.Your computed value of standard error of the estimate is 1.9549.
-Referring to Instruction 13-7,if variables that measure the number of new business starts in the last year and population density of the city were removed from the multiple regression model,which of the following would be true?

A) The coefficient of multiple determination will definitely increase.
B) The adjusted r² will definitely increase.
C) The coefficient of multiple determination can never increase.
D) The adjusted r² can never increase.