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Suppose we have a regression model with 3 independent variables and an R2 value of 0.65...

Suppose we have a regression model with 3 independent variables and an R2 value of 0.65 and an adjusted R2 value of 0.61. When we add a fourth independent variable, the new R2 value is 0.73 and the new adjusted R2 value is 0.54. What can we conclude about this newly added independent variable?

Group of answer choices

The new independent variable improves our model because R-squared increased

The new independent variable improves our model because the adjusted R-squared value decreases

The new independent variable may be unnecessary because the adjusted R-squared value decreases

None of the above

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