Economics · Econometrics
The existence of multicollinearity in a linear regression model implies that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1there is no linear relation among any of the explanatory variables
- 2there is significant correlation between the dependent and independent variables
- 3there is a high linear correlation between the explanatory variables✓
- 4the disturbance terms of the model are correlated
Correct answer
there is a high linear correlation between the explanatory variables
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