An Adverse Effect of Multicollinearity Is That the Estimated Regression

question 115

Short Answer

An adverse effect of multicollinearity is that the estimated regression coefficients of the independent variables that are correlated tend to have large sampling ____________________.

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Definitions:

Type I Error

The error of rejecting the null hypothesis when it is true, often referred to as a "false positive."

Confidence Interval

An interval of values, pulled from a sample's statistics, with a good chance of containing the elusive value of a population parameter.

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically denoted by alpha (\(\alpha\)).

Test Statistic

A value calculated from sample data during a hypothesis test that is used to make a decision about the validity of a hypothesis.