If multicollinearity problem exists in eqution SSS which of the following statements is true? O a. OLS estimators of the parameters keep their neutrality, but their standard errors tend to decrease, so the t values become larger and the t-test is unreliable O b. The predictions that will be biased OLS estimators of the parameters become valid OC The t ratios of at least one of the coefficients will be statistically insignificant and the R2 values will be smalL O d. OLS estimators of the parameters keep their neutrality, but their standard errors tend to increase, so the t values become smaller and the t-test loses its reliability

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this is an econometry question please consider.

If multicollinearity problem exists in eqution sss
which of the following statements is true?
O a. OLS estimators of the parameters keep their neutrality, but their standard errors tend to decrease, so the t values become larger
and the t-test is unreliable
O b. The predictions that will be biased OLS estimators of the parameters become valid
O C The t ratios of at least one of the coefficients will be statistically insignificant and the R? values will be small.
O d. OLS estimators of the parameters keep their neutrality, but their standard errors tend to increase, so the t values become smaller
and the t-test loses its reliability
Transcribed Image Text:If multicollinearity problem exists in eqution sss which of the following statements is true? O a. OLS estimators of the parameters keep their neutrality, but their standard errors tend to decrease, so the t values become larger and the t-test is unreliable O b. The predictions that will be biased OLS estimators of the parameters become valid O C The t ratios of at least one of the coefficients will be statistically insignificant and the R? values will be small. O d. OLS estimators of the parameters keep their neutrality, but their standard errors tend to increase, so the t values become smaller and the t-test loses its reliability
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