Question

What are the three things to remember when choosing additional independent variables for a multiple regression?

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Answer 1

There are the following 3 things you should looks when choosing an additional independent variable.

1) See the value of adjusted R square because it only increases if your additional variable is significant otherwise it decreases.

2) Look at the p-value each (pre-existed and added)variable. If you add a variable in the model and you find that the p-value>0.05. This implies that your added variable is not significant otherwise you may add.

3) Look at the correlation between the pre-independent variable and the newly added variable. For e.g., If one of your independent variable in the model is x. So, you should avoid a variable like. Since this will become the case of multicollinearity.

Even after applying all these steps, you may get a misleading result. You should have a theoretical knowledge of a variable and the phenomenon which is very important.