Which of the Following Is Not an Indicator of Multicollinearity

question 2

Multiple Choice

Which of the following is not an indicator of multicollinearity?

• A)Regression coefficients do differ considerably from values indicated by theory or experience including having incorrect signs.
• B)Coefficients of variables believed to be a strong influence have small Student's t statistics indicating that their values do not differ from 0.
• C)All the coefficient student t statistics are small,indicating no individual effect.
• D)High correlations between individual independent variables.

---

Definitions:

Statistical Procedure

A statistical procedure involves methods and operations applied on data to analyze, interpret, or draw conclusions from it.

Spearman Rank-Order

A nonparametric method for evaluating rank correlation which determines how accurately a monotonic function can depict the relationship between two variables.

P Value

A measure in statistical hypothesis testing representing the probability of obtaining a result at least as extreme as the one observed, assuming the null hypothesis is true.

Positive Relationship

A relationship between two variables where as one variable increases, the other variable also increases or as one decreases, the other also decreases.