An Independent Variable X_j Is Considered Highly Correlated with the Other

question 66

Multiple Choice

An independent variable X_j is considered highly correlated with the other independent variables if

• A)VIF_j \(\lt\) 5
• B)VIF_j \(\gt\) 5
• C)VIF_j \(\lt\)VIF_i For i \(\neq\) j
• D)VIF_j \(\gt\)VIF_i For i \(\neq\) j

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Definitions:

Income

The financial gain received by an individual or entity, typically measured over a period of time, deriving from labor, investment, or business ventures.

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.

Money Income

The total amount of monetary earnings received by an individual or household before any deductions like taxes or social security contributions.

Units

Fundamental quantities used to measure, count, or quantify objects or events.