In multiple regression analysis, which of the following is a clue that multicollinearity is present?
a. The value of R2 is large, indicting a good fit, but the individual t - tests are nonsignificant.
b. The signs of the regression coefficients are contrary to what we would intuitively expect the contributions of those variables would be.
c. A matrix of correlations, generated by computer, shows which predictor variables are highly correlated with each other and with the response variable y.
d. All of these.
e. None of these.
Question 2
If multicollinearity exists among the independent variables included in a multiple regression model, then:
a. regression coefficients will be difficult to interpret
b. standard errors of the regression coefficients for the correlated independent variables will increase
c. multiple coefficient of determination will assume a value close to zero
d. regression coefficients will be difficult to interpret and standard errors of the regression coefficients for the correlated independent variables will increase
e. none of these
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