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Which of the following are a symptom of near multicollinearity? Select one: A
Which of the following are a symptom of near multicollinearity?
Select one:
A. None of these.
B. The regression results change substantially when one particular variable is deleted.
C. Individual parameter estimates are significant.
D. The R2 value is low.
E. Confidence intervals on parameter estimates are narro
Expert Solution
Answer :
B) The regression results change substantially when one particular variable is deleted.
Reason :
Out of the few ways to predict multicollinearity, only option B is correct. One of the major ways to predict near multicollinearity is that when any X variable is added or subtracted, the regression coefficients change dramatically.
Option A is incorrect as we get an answer from the given options. Option C is incorrect as in multicollinearity only the model is significant and not the individual parameter estimates.
Option E is incorrect as in multicollinearity the confidence intervals are wide and option D is incorrect as R^2 value is high.
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