Multicollinearity Multiple Choice Questions with Answers PDF – Test 24

MCQ 116: High multicollinearity causes high variance and standard error, confidence interval will become:

1. Sensitive
2. Shrinked
3. Large
4. Rigid

MCQ 117: In finding stability of parameters, if there's a need to calculate more than 2 values, then for estimation apply:

1. Profit model
2. Logistic model
3. Referential model
4. Both A and B

MCQ 118: If an estimator becomes unbiased when the sample size increases, it is known to be:

1. Efficient estimator
2. Consistent estimator
3. Best linear unbiased estimator
4. Unbiased estimator

MCQ 119: In t-test, if df is greater than 20, α is equal to 0.05 and calculated t value is greater than 2 then:

1. Do not reject null hypothesis
2. Reject Null hypothesis
3. Estimate again
4. Do nothing

MCQ 120: The correlation coefficient does not depends upon the:

1. Relationship measure
2. Units
3. Relationship strength
4. Choice of origin