All of the following are possible effects of multicollinearity except A) the standard error of the regression coefficients may be larger than expected. B) the signs of the regression coefficients may be opposite of what is expected. C) regression coefficients can be quite unstable across samples. D) R² may be significant, yet none of the predictors are significant. E) the VIF is 0 for all predictors.

Question

Quizplus · Accepted Answer

Multicollinearity typically results in high Variance Inflation Factors (VIFs) for the predictors involved, not a VIF of 0. A VIF of 0 would imply no correlation among predictors, which contradicts the premise of multicollinearity.

All of the Following Are Possible Effects of Multicollinearity Except