Which of the Following Is True About Multicollinearity

question 23

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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