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Which of the Following Problems Is Not Caused by Multicollinearity

Question 55

Multiple Choice

Which of the following problems is not caused by multicollinearity?


A) It is difficult or even impossible to interpret the estimates of the regression coefficients.
B) Inordinately small t values for the regression coefficients may result
C) The standard deviations of the regression coefficients are underestimated
D) The algebraic sign of estimated regression coefficients may be the opposite of what would be expected for a predictor variable.
E) The variance of a given regression coefficient is larger than it would otherwise have been if the variable had been completely uncorrelated with all the other variables in the model.

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