What is the common problem that heteroscadasticity, multicollinearity and serial
ID: 1123439 • Letter: W
Question
What is the common problem that heteroscadasticity, multicollinearity and serial correlation present in regression analysis?
a) they indicate that the model has too much data that creates unexplained variation
b) they indicate that the model coefficients' standard error is incorrect and you are uncertain about the model's reliability
c) they indicate that the residuals are not normally distributed
d) their presence indicates that the standard error of the model coefficients is actually lower and the model is subjuect ot type 3 error
e) they indicate type 2 error since all of the coefficients are far too low
Explanation / Answer
b) they indicate that the model coefficients' standard error is incorrect and you are uncertain about the model's reliability
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