Multicollinearity in a Regression Model Can Be Detected When

question 83

Multiple Choice

Multicollinearity in a regression model can be detected when

• A) two or more independent variables are highly correlated with each other.
• B) an independent variable known to be an important predictor ends up having a partial regression coefficient that is not significant.
• C) a partial regression coefficient that should be positive turns out to be negative,or vise versa.
• D) when an independent variable is added or removed ,the partial regression coefficients for the other independent variables change drastically.
• E) All of the above could be evidence that multicollinearity is present in the model.

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Definitions:

Conservative Decision

A decision-making approach that involves choosing options that have the least potential for negative outcomes or risks, preferring safety and stability.

Complex Problems

Issues or challenges that are multi-faceted, involving numerous variables, and are difficult to understand or solve.

Homogeneous Teams

Groups consisting of members with similar backgrounds, skills, and perspectives, which can lead to more harmonious operations but may lack diversity in thought.

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