If an independent variable in a multiple linear regression model is an exact linear combination of other independent variables, the model suffers from the problem of _____.
A. perfect collinearity
B. homoskedasticity
C. heteroskedasticty
D. omitted variable bias
Answer: A
You might also like to view...
Gover bonds
What will be an ideal response?
A cell phone manufacturer wants to make money from tied goods. Which of the following actions will further that goal?
a. The firm sells its phones at a discount only to certain groups of customers. b. The firm sells the only battery that will work in its phones. c. The firm merges with another cell phone manufacturer. d. The firm dramatically lowers its prices to drive a competitor out of business.
The problem with applying monetary policy to the housing bubble affiliated with the recession of 2007–2008 was that the bubble was recognized______.
a. too late to take action b. so far in advance that the actions taken were excessive c. in time, but no action was taken d. in time, but underestimated
Increasing returns to scale result when
A) in the long-run, an increase in inputs will lead to an increase in the average products of inputs. B) in the long run, an increase in inputs will lead to an equivalent increase in output. C) labor becomes more skilled. D) All of the above