Which of the following is incorrect about defection of a multicollinearity in a

Question

Which of the following is incorrect about defection of a multicollinearity in a MLR? Choose all correct answers. Nonsignificant results in individual tests on the regression coefficients for important predictor variables. Estimated regression coefficients with an algebraic sign that is the opposite of that expected from theoretical considerations 01 prior experience. VIFs exceeding 10 are signs of serious requiring correction. Large simple correlation coefficients between pairs of predictor variables in the correlation matrix. Wide confidence intervals for the regression coefficients represent inn important predictor variables

Explanation / Answer

Following points are to be noted while detecting multicolinearity:

- Variance Inflation Factors (VIFs) are used to detect multicolinearity in regression models. VIF>10 indicates serious multi Colinearity.

- Signs of Regression Coefficients differ that from Prior experience

- Non-Significant regression coefficients on important predictors

- The high correlation among some of the predictors suggests that data-based multicollinearity exists.

- Marginal contribution of a predictor doesn't depend much on the other predictors in the model

Therefore answer is A.

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