Why Is Multicollinearity a Potential Problem in a Multiple Linear

question 7

Multiple Choice

Why is multicollinearity a potential problem in a multiple linear regression?

• A)It becomes difficult to assess the individual importance of predictors and it decreases the standard errors of the b coefficients making them redundant.
• B)It becomes difficult to assess the individual importance of predictors and it increases the standard errors of the b coefficients making them unreliable.
• C)It becomes difficult to assess the collective power of predictors as it increases the levels of error in the model.
• D)It becomes too easy to assess the individual importance of predictors, making the b coefficients unreliable.

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