Which of the following is not an indication of potential multicollinearity problems?
A) The sign on the standard error of the estimate is positive.
B) A sign on a regression slope coefficient is negative when the sign on the correlation coefficient was positive.
C) The standard error of the estimate increases when a variable enters the model in the presence of other independent variables.
D) An independent variable goes from being statistically significant to being insignificant when a new variable is added to the model.

Question

Quizplus · Accepted Answer

Multicollinearity refers to a situation in which two or more explanatory variables in a multiple regression model are highly linearly related. The sign on the standard error of the estimate being positive is not an indication of multicollinearity problems; it's a characteristic of standard errors in general, as they cannot be negative. The other options (B, C, D) describe situations that could indicate potential multicollinearity issues.

Which of the Following Is Not an Indication of Potential