A Predictor Whose Pairwise Correlation with Y Is near Zero

question 106

True/False

A predictor whose pairwise correlation with Y is near zero can still have a significant t-value in a multiple regression when other predictors are included.

---

Definitions:

Government Spending

Expenditures made by the government sector on goods and services, including infrastructure, education, and security, to influence the economy.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Crowding In

The potential for government spending to stimulate private investment in an otherwise dead economy.

Private Investment

Expenditure on capital by private sector firms or individuals, not including governmental spending.