Which of these problems arise as collinearity increases?
A) Untrustworthy beta coefficients.
B) The size of R is constrained
C) It is more difficult to estimate the individual importance of a predictor
D) All of the above.

Question

Quizplus · Accepted Answer

As collinearity increases, beta coefficients become unstable and untrustworthy, leading to difficulty in estimating the individual importance of a predictor. The size of the correlation coefficient (R) is also constrained, further complicating the analysis. Thus, all of these problems arise as collinearity increases.

Which of These Problems Arise as Collinearity Increases