Multicollinearity affects the ability of the ____ statistic in assessing the importance of an independent variable.
A)C
B)F
C)t
D)VIP

Question

Quizplus · Accepted Answer

Multicollinearity affects the t-statistic in assessing the importance of an independent variable. The t-statistic measures whether a coefficient is significantly different from zero or not, but if multicollinearity is present, it inflates the standard error of the coefficient, making it appear less significant than it actually is. The F-statistic is used to test the overall significance of a model and is not affected by multicollinearity. The C-statistic (also known as the concordance index) is used to evaluate the predictive power of a binary classification model, while the VIP (Variable Importance in Projection) score is a way to measure the importance of variables in a partial least squares regression (PLSR) model.

Multicollinearity Affects the Ability of the ____ Statistic in Assessing