Imperfect Multicollinearity

question 10

Multiple Choice

Imperfect multicollinearity

• A)is not relevant to the field of economics and business administration
• B)only occurs in the study of finance
• C)means that the least squares estimator of the slope is biased
• D)means that two or more of the regressors are highly correlated

---

Definitions:

Level Of Significance

A threshold in hypothesis testing that determines whether or not the null hypothesis can be rejected.

Null Hypothesis

A default premise stating no statistical significance or effect, used as a starting point for hypothesis testing to be either rejected or not rejected.

Z Statistic

A statistical measure that quantifies the distance (in standard deviation units) a data point is from the mean of a data set.

Normal Distribution

Normal Distribution is a continuous probability distribution characterized by a symmetric, bell-shaped curve, where mean, median, and mode are equal.