Suppose You Run a Regression of a Person's Height on His/her

question 43

Multiple Choice

Suppose you run a regression of a person's height on his/her right and left foot sizes,and you suspect that there may be multicollinearity between the foot sizes.What types of problems might you see if your suspicions are true?

• A) "Wrong" values for the coefficients for the left and right foot size
• B) Large p-values for the coefficients for the left and right foot size
• C) Small t-values for the coefficients for the left and right foot size
• D) All of these options

---

Definitions:

Law of Demand

An economic principle stating that as the price of a good increases, the demand for that good decreases, and vice versa.

Steak

A cut of meat, typically beef, that is sliced perpendicular to the muscle fibers, often grilled or pan-fried.

Rhode Island

The smallest U.S. state by area, located in the New England region.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite of normal goods.