Which One of the Following Is Not a Tool Used

question 63

Multiple Choice

Which one of the following is not a tool used to identify multicollinearity?

• A)Variance Inflation Factor
• B)Correlation matrix
• C)Studentized residuals
• D)Scatter plots that show the scatter plots for all combinations of variables in the regression model

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Definitions:

Discounted Value

The present value of a future amount of money or stream of cash flows given a specified rate of return.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

Future Consumption

The concept of saving resources or income in the present in order to consume or utilize in the future, reflecting economic planning and saving behavior.

Present Value

The current worth of a future sum of money or flow of cash flows given a specified rate of return.