If multicollinearity exists among the independent variables included in a multiple regression model, then:
A. the regression coefficients will be difficult to interpret.
B. the standard errors of the regression coefficients for the correlated independent variables will increase.
C. one or more of the coefficients may have the wrong sign.
D. All of these choices are true.
Analysis:
A. Incorrect. All of these choices are true.
B. Incorrect. All of these choices are true.
C. Incorrect. All of these choices are true.
D. Correct. All of these choices are true.
ANSWER : D
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