Imperfect multicollinearity
A)is not relevant to the field of economics and business administration
B)only occurs in the study of finance
C)means that the least squares estimator of the slope is biased
D)means that two or more of the regressors are highly correlated

Question

Quizplus · Accepted Answer

Imperfect multicollinearity means that two or more of the regressors are highly correlated, which can cause issues with interpreting the coefficients and can lead to unstable estimates. It is relevant to the field of economics and business administration. It does not necessarily mean that the least squares estimator of the slope is biased.

Imperfect Multicollinearity