What may be deduced if multicollinearity exists among the independent variables included in a multiple regression model?
A) The regression coefficients will be difficult to interpret.
B) The standard errors of the regression coefficients for the correlated independent variables will increase
C) The multiple coefficient of determination will assume a value close to 0.
D) Both a andB

Question

Quizplus · Accepted Answer

If multicollinearity exists among the independent variables included in a multiple regression model, it will make it difficult to interpret the regression coefficients (Option A). Moreover, the standard errors of the regression coefficients for the correlated independent variables will increase (Option B). As a result, the multiple coefficient of determination will assume a value close to 0 (Option C). Hence both options A and B are correct.

What May Be Deduced If Multicollinearity Exists Among the Independent