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Free Multicollinearity MCQ App Download with MCQ: "In multicollinearity, due to high variance and standard error, t-test will become statistically"; with answers: significant, insignificant, very high, and very low. Practice Multicollinearity Quiz Questions, download Apple Book (Free Chapter) for digital executive effectiveness.

Multicollinearity MCQs PDF Download – Prep Test

MCQ 1: In multicollinearity, due to high variance and standard error, t-test will become statistically:

  1. Significant
  2. Insignificant
  3. Very high
  4. Very low

MCQ 2: Closer the value of tolerance to 1, for which there exists:

  1. Less chance of multicollinearity
  2. High chance of multicollinearity
  3. Less chance of perfect multicollinearity
  4. High chance of perfect multicollinearity

MCQ 3: As a rule of thumb, multicollinearity exist if the value of VIF exceeds:

  1. 5
  2. 10
  3. 15
  4. 20

MCQ 4: There may be a case where you are required x⊂t and x⊂t-1 in the model, which causes:

  1. Trending factors
  2. Lagged term introduction
  3. Model selection biasness
  4. Model selection unbiasness

MCQ 5: In VIF calculation, if the value of R² is taken as 0, computed VIF would be equal to:

  1. 1
  2. 0
  3. -1
  4. Undefined

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