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  3. suppose you perform the following multiple regress

Suppose you perform the following multiple regression: Y = B0 + B1X1 + B2X2 + B3X3....

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Basic Math

Suppose you perform the following multiple regression: Y = B0 +B1X1 + B2X2 + B3X3. You find that X1 and X3 have a near perfectcorrelation. How would you conclude on the utility of yourregression result? This is a problem of multicollinearity whichrenders the entire regression invalid. This is a problem ofmulticollinearity which nevertheless does not invalidate theutility of the model as a whole This is NOT a regression problemand inferences made using the model and the respective coefficientsremain valid. This is a problem of multicollinearity. Howeverinferences made concerning the individual contribution of the modelcoefficients remain valid

Answer & Explanation Solved by verified expert
3.8 Ratings (600 Votes)
We need to see the value of R square value and the adjusted Rsquare of a given data There shouldnt be much difference betweenthese A difference of 5 10 is accepted 5 is much    See Answer
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