Which of the Following Is True About Multicollinearity

question 27

Multiple Choice

Which of the following is true about multicollinearity?

• A) The effect of a dependent variable on another becomes difficult to isolate.
• B) Regression coefficients become clearer and are easier to interpret.
• C) P-values reduce significantly leading to rejection of null hypothesis.
• D) It is best measured using the statistic variance inflation factor VIF).

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Definitions:

Fundamental Attribution Error

The tendency for observers, when analyzing another's behavior, to underestimate the impact of the situation and to overestimate the impact of personal character or intent.

Internal Factors

refers to influences originating within an individual, such as beliefs, attitudes, and personal motivations, affecting their behavior and actions.

Social Psychological Theories

Theories in social psychology that explain how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Social Inequity

Refers to the unequal distribution of resources, opportunities, and treatment among people based on various demographic factors such as race, gender, income, etc.