Which of the following is not a possible indicator of multicollinearity?
A) non-random patterns in the plot of the residuals versus the fitted values
B) significant correlations between pairs of independent variables
C) non-significant t-tests for individual β parameters when the F-test for overall model adequacy is significant
D) signs opposite from what is expected in the estimated β parameters

Question

Quizplus · Accepted Answer

Non-random patterns in the plot of the residuals versus the fitted values are typically indicators of model misspecification or non-linearity, not multicollinearity. Multicollinearity is more directly related to the relationships between independent variables.

Which of the Following Is Not a Possible Indicator of Multicollinearity