Which of the following is true in relation to multicollinearity in multiple regr

Question

Which of the following is true in relation to multicollinearity in multiple regression? Select all that apply.

Question 20 options:

There is a potential serious multicollinearity problem if at least one of the VIFs (variance inflation factors) is greater than 10.

Even in the presence of multicollinearity it is safe to use the regression equation to make predictions for the response variable because the regression standard error is not affected by multicollinearity.

The estimates of the coefficients in front of the explanatory variables involved in the multicollinearity problem are unreliable, so hypothesis tests and confidence intervals for the corresponding coefficients in the population can be misleading.

There is a potential serious multicollinearity problem if at least one of the VIFs (variance inflation factors) is greater than 10.

Even in the presence of multicollinearity it is safe to use the regression equation to make predictions for the response variable because the regression standard error is not affected by multicollinearity.

The estimates of the coefficients in front of the explanatory variables involved in the multicollinearity problem are unreliable, so hypothesis tests and confidence intervals for the corresponding coefficients in the population can be misleading.

Explanation / Answer

The right answers are:

1.

There is a potential serious multicollinearity problem if at least one of the VIFs (variance inflation factors) is greater than 10

2.

The estimates of the coefficients in front of the explanatory variables involved in the multicollinearity problem are unreliable, so hypothesis tests and confidence intervals for the corresponding coefficients in the population can be misleading.

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