If an Independent Variable in a Multiple Linear Regression Model

question 27

Multiple Choice

If an independent variable in a multiple linear regression model is an exact linear combination of other independent variables, the model suffers from the problem of _____.

• A)perfect collinearity
• B)homoskedasticity
• C)heteroskedasticty
• D)omitted variable bias

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Definitions:

Obtained Value

The specific result or number arrived at after conducting an experiment or calculation.

Critical Value

A point on the scale of the test statistic beyond which the hypothesis is rejected.

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption to be tested in statistical hypothesis testing.

One-Tailed Test

A statistical test in which the region of rejection is on only one side of the sampling distribution, used when making a directional hypothesis about a population parameter.