Which of the Following Is Not an Indication of Potential

question 125

Multiple Choice

Which of the following is not an indication of potential multicollinearity problems?

• A) The sign on the standard error of the estimate is positive.
• B) A sign on a regression slope coefficient is negative when the sign on the correlation coefficient was positive.
• C) The standard error of the estimate increases when a variable enters the model in the presence of other independent variables.
• D) An independent variable goes from being statistically significant to being insignificant when a new variable is added to the model.

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Definitions:

Barriers To Entry

Factors that prevent new firms from entering and competing in imperfectly competitive industries.

Market Share

The proportion of the total sales or output produced in a market by a single company, often used as an indicator of competitiveness.

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

Health Club Memberships

Fees paid, usually on a monthly or annual basis, for access to a health club or gym's facilities and services.