In Multiple Regression,if There Is Multicollinearity Between Independent Variables,the T-Tests

question 55

True/False

In multiple regression,if there is multicollinearity between independent variables,the t-tests of the individual coefficients may indicate that some variables are not linearly related to the dependent variable,when in fact,they are.

---

Definitions:

Ratify

To officially approve or confirm, often used in the context of formalizing agreements or treaties.

Letter-Of-Credit

A financial instrument issued by a bank guaranteeing a buyer's payment to a seller, providing security in international trade transactions.

Formal Contract

A legally binding agreement, often in written form, that explicitly outlines the terms and conditions agreed upon by the parties involved.

Informal Contract

A non-official agreement that lacks the formalities of a written contract but is still legally binding.