Which of the following is a consequence of severe multicollinearity in a regression model? A. High standard errors for the estimated coefficients B. Lower standard errors for the estimated coefficients C. The OLS estimator becomes biased D. The dependent variable becomes constant
Which of the following is a consequence of severe multicollinearity in a regression model? A. High standard errors for the estimated coefficients B. Lower standard errors for the estimated coefficients C. The OLS estimator becomes biased D. The dependent variable becomes constant
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 1.4CE
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Which of the following is a consequence of severe multicollinearity in a regression model?
A. High standard errors for the estimated coefficients
B. Lower standard errors for the estimated coefficients
C. The OLS estimator becomes biased
D. The dependent variable becomes constant
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