If Multicollinearity Exists Among the Independent Variables Included in a Multiple

question 11

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) 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) regression coefficients will be difficult to interpret and standard errors of the regression coefficients for the correlated independent variables will increase
• E) none of these

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