Which of the Following Statements Regarding Multicollinearity Is FALSE

Multiple Choice

Which of the following statements regarding multicollinearity is FALSE?

A) Multicollinearity is said to be present in a multiple regression problem when the predictor variables are correlated among themselves.
B) If the data are highly multicollinear, there will be a tendency to judge many of the predictor variables as not being related to the criterion variable when in fact they are.
C) The standard error of estimate of the least squares coefficients increases as the dependence among the predictor variables increases.
D) A multicollinear condition within a data set increases the efficiency of the estimates for the regression parameters.
E) Multicollinearity makes interpretation of the beta coefficients problematic.