Imperfect multicollinearity
A)implies that it will be difficult to estimate precisely one or more of the partial effects using the data at hand
B)violates one of the four Least Squares assumptions in the multiple regression model
C)means that you cannot estimate the effect of at least one of the Xs on Y
D)suggests that a standard spreadsheet program does not have enough power to estimate the multiple regression model

Question

Quizplus · Accepted Answer

Imperfect multicollinearity means that two or more independent variables are highly correlated with each other, which can make it difficult to estimate precisely one or more of the partial effects using the data at hand. However, it does not violate any of the four Least Squares assumptions in the multiple regression model, and it also does not mean that you cannot estimate the effect of at least one of the Xs on Y. It also does not suggest that a standard spreadsheet program does not have enough power to estimate the multiple regression model.

Imperfect Multicollinearity