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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A type of fast-access memory that stores frequently used data and instructions for quicker retrieval by the central processing unit.

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Memory modules capable of fast data transfer rates, significantly enhancing computing performance.

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Non-volatile storage that keeps data persistently saved even when not in active use, such as hard drives, SSDs, or cloud storage.

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A form of data storage that typically involves removable media with high capacity, used for archiving or backup purposes.