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

Question

Quizplus · Accepted Answer

Multicollinearity primarily affects the precision of the estimates of the regression coefficients, making it difficult to determine the individual impact of each predictor. It does not, however, affect the computation of test statistics directly; those are more broadly influenced by the overall model fit and error terms.

Which of the Following Is Not a Problem Associated with Multicollinearity