Which of these statements is/are FALSE? Select all that apply. Hint: There are two statements that are false. Imperfect multicollinearity can make it difficult to distinguish the individual effects on the dependent variable of one regressor from that of another regressor. OLS estimators cannot be computed in the presence of perfect multicollinearity. In the presence of imperfect multicollinearity, the OLS estimators will be biased. Under imperfect multicollinearity, two or more regressors are highly correlated. When two variables in a regression are highly correlated, then the coefficients on at least one individual regressor will be imprecisely estimated. We can still compute the OLS estimators in the presence of imperfect multicollinearity. The effect of imperfect multicollinearity is to increase the variance of the OLS estimators. Imperfect multicollinearity increases the standard errors of the regression coefficients, and hence t- and F- tests are invalid.

MATLAB: An Introduction with Applications
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Chapter1: Starting With Matlab
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Which of these statements is/are FALSE? Select all that apply.
Hint: There are two statements that are false.
Imperfect multicollinearity can make it difficult to distinguish the
individual effects on the dependent variable of one regressor from
that of another regressor.
OLS estimators cannot be computed in the presence of perfect
multicollinearity.
In the presence of imperfect multicollinearity, the OLS estimators
will be biased.
Under imperfect multicollinearity, two or more regressors are
highly correlated.
When two variables in a regression are highly correlated, then the
coefficients on at least one individual regressor will be imprecisely
estimated.
We can still compute the OLS estimators in the presence of
imperfect multicollinearity.
The effect of imperfect multicollinearity is to increase the variance
of the OLS estimators.
Imperfect multicollinearity increases the standard errors of the
regression coefficients, and hence t- and F- tests are invalid.
Transcribed Image Text:Which of these statements is/are FALSE? Select all that apply. Hint: There are two statements that are false. Imperfect multicollinearity can make it difficult to distinguish the individual effects on the dependent variable of one regressor from that of another regressor. OLS estimators cannot be computed in the presence of perfect multicollinearity. In the presence of imperfect multicollinearity, the OLS estimators will be biased. Under imperfect multicollinearity, two or more regressors are highly correlated. When two variables in a regression are highly correlated, then the coefficients on at least one individual regressor will be imprecisely estimated. We can still compute the OLS estimators in the presence of imperfect multicollinearity. The effect of imperfect multicollinearity is to increase the variance of the OLS estimators. Imperfect multicollinearity increases the standard errors of the regression coefficients, and hence t- and F- tests are invalid.
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