If a Group of Independent Variables Are Not Significant Individually

question 63

Multiple Choice

If a group of independent variables are not significant individually but are significant as a group at a specified level of significance,this is most likely due to

• A) collinearity.
• B) the absence of dummy variables.
• C) the presence of dummy variables.
• D) autocorrelation.

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, essentially what is given up when choosing one option over another.

Specialization

The practice of focusing effort on a particular field or discipline, leading to increased efficiency and expertise in that area.

Cheese

A dairy product made from curdled or cultured milk, coming in various textures and flavors.

Opportunity Cost

The loss of value from not opting for the closely competing alternative when faced with a decision.