Which of the Following Is Not a Problem Associated with Multicollinearity

question 26

Multiple Choice

Which of the following is not a problem associated with multicollinearity?

• A) Predictor variables may be incorrectly included or removed in stepwise regression.
• B) It becomes difficult to assess the relative importance of the independent variables in explaining the variation in the dependent variables.
• C) It becomes difficult to compute the correct test statistic.
• D) The partial regression coefficients may not be estimated precisely. The standard errors are likely to be high.

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