If Multicollinearity Exists Among the Independent Variables Included in a Multiple

question 66

Multiple Choice

If multicollinearity exists among the independent variables included in a multiple regression model, then:

• A) regression coefficients will be difficult to interpret.
• B) the standard errors of the regression coefficients for the correlated independent variables will increase.
• C) multiple coefficient of determination will assume a value close to zero.
• D) the standard errors of the regression coefficients for the correlated independent variables will increase and and multiple coefficient of determination will assume a value close to zero.

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Definitions:

Economy

A system of production, distribution, and consumption of goods and services within a particular geographical region.

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In logic, the part of a proposition or sentence that asserts something about the subject, often describing an action, state, or quality.

Proposition

A statement or assertion that expresses a judgment or opinion which can be true or false.

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A word that describes an action, occurrence, or state of being.