In a Regression Model, If Independent Variables Exhibit Multicollinearity, Then

question 42

Multiple Choice

In a regression model, if independent variables exhibit multicollinearity, then:

• A) the strength of association of variables changes according to the beta coefficient.
• B) determination of the best fitting line requires maximization of the vertical distances of all the points from the line.
• C) standardization augments the effects of using different scales of measurement.
• D) computing factor scores is the least effective approach to regression analysis.
• E) the estimation of separate regression coefficients for the correlated variables becomes difficult.

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Definitions:

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Comprised of varying elements or components that differ from one another; varied in nature or substance.

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