📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    Multicollinearity

    causes 
    A low R-squares Correct Answer Incorrect Answer
    B biased coefficient estimates Correct Answer Incorrect Answer
    C inconsistent coefficient estimates Correct Answer Incorrect Answer
    D none of these Correct Answer Incorrect Answer

    Solution

    All the options are not the result of Multicollinearity. In presence of multicollinearity, variance gets inflated and t ratios are insignificant but R^2 is high.

    Practice Next
    ask-question