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:

Veil of Ignorance

Concept from Rawls’ "A Theory of Justice" suggesting decision-makers should make societal rules as if they were ignorant of their own status in society to ensure fairness.

Principles of Justice

Fundamental norms or rules that guide the distribution of burdens and benefits in a society fairly and equitably.

Advantage

A condition or circumstance that puts one in a favorable or superior position relative to others.

Moral People

Individuals who act in ways that are considered ethically right and good, often guided by personal conscience and societal norms.