Trusted by millions of Kenyans
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

What are practical consequences of multicollinearity?

What are practical consequences of multicollinearity?

Answers


John
1. Wrong signs of regression coefficients.
2. Nonsense regression results.
3. Large variances and standard errors of ordinary least square estimators.
4. Wider confidence intervals.
5. Difficulty in assessing individual contribution of explanatory variables to explained sum of squares.
Jonmhumble answered the question on October 30, 2017 at 19:29

Answer Attachments

Exams With Marking Schemes

Related Questions