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Why Is It Important to Distinguish Between Explicit and Implicit

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Why is it important to distinguish between explicit and implicit costs?


Definitions:

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated.

Independent Variables

Factors or conditions that are manipulated or changed in an experiment to observe their effect on dependent variables without being influenced by them.

Regression Coefficients

Quantitative values that represent the strength and direction of the relationship between variables in a regression model.

Standard Errors

A measure of the variability or uncertainty in a statistical model, particularly in the estimation of coefficients.

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