Typical symptoms of the presence of multicollinearity include which of the following?
A) The estimated regression coefficients vary substantially from sample to sample; this fact raises their standard errors; hence, theis unlikely to be greater than 2, or statistically significant.
B) The estimated regression coefficients change greatly in value as independent variables are dropped from or added to the regression equation.
C) The signs of the estimated regression coefficients are nonsensical; they are negative when common sense suggests positive signs and vice versa.
D) All of the above and more.

Question

Quizplus · Accepted Answer

Multicollinearity can cause a variety of symptoms, including variation in estimated regression coefficients from sample to sample, large changes in coefficient values when independent variables are added or dropped, and nonsensical coefficient signs. Other symptoms may include high standard errors or low t-statistics for independent variables that are actually important predictors.

Typical Symptoms of the Presence of Multicollinearity Include Which of the Following