When Confronted with Multicollinearity, a Good Remedy Is to ________

question 115

Multiple Choice

When confronted with multicollinearity, a good remedy is to ________ if we can justify its redundancy.

• A) add one more collinear variable
• B) drop one of the collinear variables
• C) remove both the collinear variables
• D) add as many collinear variables as possible

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Definitions:

Net Sales

Net sales are the total revenue from goods or services sold by a company, minus returns, allowances for damaged or missing goods, and discounts.