17. If a group of independent variables are not significant individually, but ar

Question

17. If a group of independent variables are not significant individually, but are significant as a group at a specified level of significance, this is most likely due to
A) the absence of dummy variables.
B) the presence of dummy variables.
C) autocorrelation.
D) collinearity.

18. True or False: The Variance Inflationary Factor (VIF) measures the correlation of the X variables with the Y variable.
A) True
B) False

19. True or False: Collinearity is present when there is a high degree of correlation between independent variables.
A) True
B) False

Explanation / Answer

17.) D (self-explanatory ;) ) 18.) False (VIF measure of the degree of multicollinearity) 19.) True (by definition of collinearity)

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