What is multicollinearity? In general, how would you know if you had a problem with multicollinearity, and how could you correct it?
What will be an ideal response?
Multicollinearity occurs when the independent variables are correlated. One indication of multicollinearity is that the equation will pass the F-test, but individual variables will not have significant t values. Multicollinearity can sometimes be corrected by omitting some of the correlated variables or by choosing proxy variable.
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Read Eye on the Benefit and Cost of School on p. 15 and explain why both you and Clayton Kershaw made the right decision
What will be an ideal response?
Refer to Table 20-11. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?
A) 40.08 B) 100 C) 180 D) 208
The change in consumption divided by a change in income is called the:
a. consumption function. b. marginal propensity to consume. c. marginal propensity to spend. d. spending function. e. changing propensity to consume.
The Great Depression consisted of how many business cycles?
A. 1 B. 2 C. 3 D. 4