The application of multiple regression analysis to a data set yields an F statistic that is highly significant and t ratios that are not significant. This is an indication that
A) autocorrelation is present.
B) multicollinearity is present.
C) homoscedasticity is present.
D) heteroscedasticity is present.

Question

Quizplus · Accepted Answer

When the F statistic in a multiple regression analysis is significant, but the t ratios for the individual predictors are not, this often suggests multicollinearity. Multicollinearity occurs when two or more independent variables in the model are highly correlated with each other, making it difficult to assess the individual effect of each variable on the dependent variable.

The Application of Multiple Regression Analysis to a Data Set