Answers
Answer: Option (2)
Since adding more variables eventually increases the degree of freedom in the numerator of the F statistic and F statistic will likely decreases as a result.
Too many variables in the regression model leads to the following problems.
The number of parameter estimated will be larger than the number of observations which means there is lack of degrees of freedom..
The independent variables will be too correlated
The f-statistic and Adjusted R squared also may not depict a true picture because of high degree of freedom.
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