Imperfect Multicollinearity Is When

question 21

Multiple Choice

Imperfect multicollinearity is when:

• A) two or more independent variables have nearly an exact linear relationship.
• B) two independent variables are nearly orthogonal.
• C) the r-squared coefficient is nearly zero.
• D) the coefficients on two independent variables are nearly equal.

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Definitions:

Internal Causes

Factors within an individual, such as traits, beliefs, or desires, that explain or influence their behavior.

Stable Causes

Factors or conditions that consistently contribute to an outcome or effect with little variation over time.

Actor-Observer Bias

A cognitive bias involving the tendency to attribute one's own actions to external factors while attributing others' actions to their personality or disposition.

Cognitive Dissonance

A psychological phenomenon that occurs when an individual experiences discomfort due to holding conflicting beliefs or values.