Solved

In the Case of Perfect Multicollinearity,OLS Is Unable to Estimate

Question 3

Essay

In the case of perfect multicollinearity,OLS is unable to estimate the slope coefficients of the variables involved.Assume that you have included both X1 and X2 as explanatory variables,and that X2 = X In the case of perfect multicollinearity,OLS is unable to estimate the slope coefficients of the variables involved.Assume that you have included both X1 and X2 as explanatory variables,and that X2 = X   ,so that there is an exact relationship between two explanatory variables.Does this pose a problem for estimation? ,so that there is an exact relationship between two explanatory variables.Does this pose a problem for estimation?

Correct Answer:

verifed

Verified

Related Questions