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How Does a Researcher Know When Multicollinearity Is Too High

Question 6

Multiple Choice

How does a researcher know when multicollinearity is too high?


A) A sample correlation coefficient between two independent variables is greater than ±0.60.
B) The variance inflation factor equals zero.
C) The variance inflation factor is equal to 1.
D) The tolerance factor is high, such as greater than 1.0
E) The R2 is less than 20%.

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