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

---

Definitions:

Accounting Software

Computer programs that assist bookkeepers and accountants in recording and reporting a firm's financial transactions.

Relative Fair Value

A method of allocating the total purchase price in a business combination to the acquired assets and liabilities based on their fair values.

Database Access

Database access pertains to the permission or capability to retrieve or manipulate data stored in a database.

Upfront Advice

Preliminary counsel or guidance provided, often involving a fee, before the client commits to a service or makes an investment.