In Multiple Regressions,when Two or More Independent Variables Are Correlated

question 136

Multiple Choice

In multiple regressions,when two or more independent variables are correlated with one another,the situation is known as:

• A)multicollinearity.
• B)heteroscedasticity.
• C)homoscedasticity.
• D)auto-correlation.

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Definitions:

Common Stock

Common stock signifies ownership in a corporation, granting holders a vote in corporate matters and a portion of the company's earnings via dividends.

Treasury

The department within a government or corporation responsible for managing monetary assets and debt obligations.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with predetermined dividend payments.

Cumulative

Describing something that increases or accumulates over time, often used in reference to dividends or data.