Which one of the following is NOT a symptom of near multicollinearity? A) The R² value is high B) The regression results change substantively when one particular variable is deleted C) Confidence intervals on parameter estimates are narrow D) Individual parameter estimates are insignificant

Question

Quizplus · Accepted Answer

Near multicollinearity typically results in wide confidence intervals on parameter estimates because it increases the standard errors of the coefficients. This makes it harder to determine the precise effect of each independent variable on the dependent variable.

Which One of the Following Is NOT a Symptom of near Multicollinearity