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  1. Topics
  2. Statistics
  3. Business Statistics Communicating with Numbers Study Set 1
  4. Quiz 15: Inference With Regression Models

Multicollinearity Is Suspected When

Question 54
Multiple Choice

Multicollinearity is suspected when A)there is a low R2 coupled with significant explanatory variables. B)there is a high R2 coupled with significant explanatory variables. C)there is a low R2 coupled with insignificant explanatory variables. D)there is a high R2 coupled with insignificant explanatory variables.

Related questions
Q 55
One of the assumptions of regression analysis is: A)there is perfect multicollinearity among some explanatory variables. B)there is no perfect multicollinearity among any explanatory variables. C)there is some degree of multicollinearity among some explanatory variables. D)None of the above.
Q 56
Which of the following violates the assumptions of regression analysis? A)The error term is normally distributed. B)The error term has a zero mean. C)The error term is correlated with an explanatory variable. D)The error term has a constant variance.
Q 57
When confronted with multicollinearity,a good remedy is to ____ if we can justify its redundancy. A)add one more collinear variable. B)drop one of the collinear variables. C)remove both the collinear variables. D)add as many collinear variables as possible.
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