In the Following Regression, Which Statement Best Describes the Degree

question 92

Multiple Choice

In the following regression, which statement best describes the degree of multicollinearity? $\begin{array}{lrrrrr}\hline \text { Variables } & \text { Coefficients } & \text { Std. Error } & t(d f=81) & p \text {-value } & \text { VFF } \\\hline \text { Intercept } & 9.8080 & 16.9900 & 0.577 & 5654 & \\\text { NumCyl } & -1.6804 & 0.5757 & -2.919 & 0045 & 3.159 \\\text { HPMax } & -0.0369 & 0.0140 & -2.630 & 0102 & 3.068 \\\text { ManTran } & 0.2868 & 1.2802 & 0.224 & 8233 & 2.105 \\\text { Length } & 0.1109 & 0.0601 & 1.845 & 0686 & 4.339 \\\text { Wheelbase } & -0.0701 & 0.1714 & -0.409 & 6836 & 7.553 \\\text { Width } & 0.4079 & 0.2922 & 1.396 & 1665 & 6.857 \\\text { RearStRm } & -0.0085 & 0.2018 & -0.042 & 9666 & 2.015 \\\text { Weight } & -0.0025 & 0.0020 & -1.266 & 2090 & 7.670 \\\text { Domestic } & -1.2291 & 1.1391 & -1.079 & 2838 & 1.825 \\\hline\end{array}$

• A)Very little evidence of multicollinearity.
• B)Much evidence of multicollinearity.
• C)Only NumCyl and HPMax are collinear.
• D)Only ManTran and RearStRm are collinear.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular category or period, indicating over or under spending.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period, often used for setting performance expectations.

Revenue and Spending Variance

The difference between the budgeted and actual amounts of revenue and expenditure over a specific period.

Net Operating Income

Income from a company's core business operations, excluding deductions of interest and taxes.