Which of the Following Statements About Collinearity in a Multiple

question 8

Multiple Choice

Which of the following statements about collinearity in a multiple regression model is false?

• A)The Variance Inflation Factor can measure the collinearity of a predictor variable.
• B)Coefficients of predictor variables will not be affected by collinearity.
• C)Collinearity should be suspected if a model has a high R² and large F but no significant predictor variables.
• D)All predictors must be considered in determining collinearity in a multiple regression model.
• E)None of these are false.

---

Definitions:

Future Outcome

An event or result that occurs later in time, often as a consequence of actions taken in the present.

Forecasts

Predictions about future events, conditions, or trends based on current data or analysis, used to assist in planning and decision-making.

Shortsighted Emphasis

A focus on immediate outcomes without considering long-term implications.

Organizational Strategy

A plan devised by an organization to achieve long-term goals and sustain competitive advantage.