Question

In a multiple linear regression model, the presence of perfect multicollinearity among the explanatory variables will primarily result in which of the following issues?

A The OLS estimates will be biased and inconsistent.
B The OLS estimates will be inefficient (not BLUE).
C The OLS estimates will be undefined, making estimation impossible.
D The residual variance will be non-constant (heteroskedasticity).
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)