Which of the Following Statements Regarding Multicollinearity Is Not True

question 147

Multiple Choice

Which of the following statements regarding multicollinearity is not true?

• A)It exists in virtually all multiple regression models.
• B)It is also called collinearity and intercorrelation.
• C)It is a condition that exists when the independent variables are highly correlated with the dependent variable.
• D)All of these choices are true.

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Definitions:

Standard Hours

The expected time it should take to complete a specific task or produce a given quantity of goods under normal conditions.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Dividends

Financial distributions to a corporation's shareholders, usually coming from the business's earnings.