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Q.28
Suppose you perform the following multiple regression: Y = B0 + B1X1 + B2X2 + B3X3. You find that X1 and X3 have a near perfect correlation. How would you conclude on the utility of your regression result?
a. This is a problem of multicollinearity which renders the entire regression invalid.
b. This is a problem of multicollinearity which nevertheless does not necessarily invalidate the utility of the model as a whole.
c. This is NOT a regression problem and inferences made using the model and the respective coefficients remain valid.
d. This is a problem of multicollinearity. However inferences m
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