A Regression Analysis Is Said to Suffer from Multicollinearity When

question 25

Multiple Choice

A regression analysis is said to suffer from multicollinearity when:

• A) the dependent and independent variables move in the same direction.
• B) two or more explanatory variables tend to move together.
• C) the degrees of freedom in the regression is equal to zero.
• D) the explanatory variables vary independently of one another.
• E) the correlation coefficient between the predicted and the explanatory variables is equal to zero.

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