Which of the following is not a problem associated with multicollinearity?
A) Predictor variables may be incorrectly included or removed in stepwise regression.
B) It becomes difficult to assess the relative importance of the independent variables in explaining the variation in the dependent variables.
C) It becomes difficult to compute the correct test statistic.
D) The partial regression coefficients may not be estimated precisely. The standard errors are likely to be high.

Question

Quizplus · Accepted Answer

Multicollinearity does not affect the computation of the test statistic itself, but it does affect the precision and reliability of the estimates, making it difficult to interpret the results.

Which of the Following Is Not a Problem Associated with Multicollinearity