When the Statistic Used to Determine Whether or Not Multicollinearity

question 88

Multiple Choice

When the statistic used to determine whether or not multicollinearity is a concern in multiple regression is greater than ________,it is prudent to remove that variable and rerun the regression.

• A).05
• B).10
• C).95
• D)1.00
• E)10

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Present Value

The present value of a future amount of money or series of cash flows, taking into account a particular return rate.

Residual Value

Residual Value is the estimated value of an asset at the end of its useful life, often considered in depreciation calculations or when leasing assets.

Cash Inflows

The total amount of money received by a company during a given period from various sources, including operations, investment, and financing activities.