8. Which of the following will result from running a regression model with a high degree of correlation among the independent variables? a) The OLS estimates will be biased b) The t-statistics become highly significant c) The hypothesis testing procedures remain valid d) None of the above

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 24PFA
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8. Which of the following will result from running a regression model with a high degree of
correlation among the independent variables?
a) The OLS estimates will be biased
b) The t-statistics become highly significant
c) The hypothesis testing procedures remain valid
d) None of the above
Transcribed Image Text:8. Which of the following will result from running a regression model with a high degree of correlation among the independent variables? a) The OLS estimates will be biased b) The t-statistics become highly significant c) The hypothesis testing procedures remain valid d) None of the above
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