Group Mean Centring Is a Useful Way to Prevent Multicollinearity

question 16

Multiple Choice

Group mean centring is a useful way to prevent multicollinearity, but how is it usually calculated?

• A) An individual score (player confidence) is subtracted from a group mean (mean player confidence in that group).
• B) An individual score (player confidence) is multiplied by the group mean (mean player confidence in that group).
• C) An individual score (player confidence) is added to a group mean (mean player confidence in that group).
• D) An individual score (player confidence) is divided by a group mean (mean player confidence in that group).

---

Definitions:

Acquisition Transaction

The process by which one company purchases most or all of another company's shares or assets, effectively taking control of the target company.

Common Stock

A type of ownership in a corporation, representing a claim on part of the company's assets and earnings.

Contingent Consideration

An obligation of a buyer to transfer additional assets or equity interests if future events occur or conditions are met after a business combination.