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:

Operating Plan

A detailed outline of a company's goals, strategies, and projected financial actions within a specific period, usually part of the overall business plan.

Planning Assumption

An assumption about the future on which a business plan is based. The assumption must be reflected in the firm’s financial projections by calculating the specific financial statement figures it implies.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically detailed in an income statement, a balance sheet, and a statement of cash flows.

Strategic Plans

Long-term, forward-looking approaches and plans created by organizations to achieve major goals and objectives.