Which of the Following Is Not a Problem Associated with Multicollinearity

question 76

Multiple Choice

Which of the following is not a problem associated with multicollinearity?

• A) It becomes difficult to compute the correct test statistic.
• B) It becomes difficult to assess the relative importance of the independent variables in explaining the variation in the dependent variables.
• C) The partial regression coefficients may not be estimated precisely.The standard errors are likely to be high.
• D) Predictor variables may be incorrectly included or removed in stepwise regression.