If Multicollinearity Exists Among the Independent Variables Included in a Multiple

question 67

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)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 coefficient of determination will assume a value close to zero.

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Definitions:

Discrete Random Variable

A type of random variable that can take on a countable number of distinct and separate values.

Weighted Average

An average that attributes different weights to elements in the dataset, reflecting their varying levels of importance or frequency.

Expected Value

The long-run average value of repetitions of the experiment it represents, in probability and statistics.

Random Variable

A quantity whose numerical values emerge from unpredictable phenomena.