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    Question

    What are the potential consequences of high

    multicollinearity in a multiple regression model?
    A Inflated standard errors and unreliable coefficient estimates Correct Answer Incorrect Answer
    B Improved prediction accuracy and lower model variance Correct Answer Incorrect Answer
    C No effect on the model’s R-squared or overall fit Correct Answer Incorrect Answer
    D Higher significance of individual predictors and more accurate p-values Correct Answer Incorrect Answer

    Solution

    The correct answer is A

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