Omitted variable bias
Hi,
What should we do in a scenario where we need to include the extra variable but addition of it decreases the adjusted R squared value?
1 answers ( 0 marked as helpful)
Hello Mohammad,
Thanks for reaching out.
There are fields of study in which its experts include all the variables in a regression model even if its estimated parameters are non-significant. It actually depends on the researcher or analyst whether to include or not non-significant predictors in a regression.
Hope this helps.
Best,
The 365 Team