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Select all of the following that are correct: (please note that you can choose m

ID: 3217520 • Letter: S

Question

Select all of the following that are correct: (please note that you can choose multiple answers and that you will get partial credit for the ones that you answer correctly) Multicollinearity occurs if the dependent variable and the independent variable are significantly related to each other. 90% of total variation in the dependent variable is explained by the independent variable for a multiple R2 = 0.90. The standard error of estimate is calculated as the squareroot of mean square regression (MSR) The multiple coefficient of determination, R2, reports the proportion of the variation in Y that is not explained by the variation in the set of independent variables. The coefficient of multiple determination reports the strength of the association between the dependent variable and the set of independent variables. If an independent variable is theoretically and intuitively related to the dependent variable, but you do not find such significant relationship in your multiple regression, you need to check for multicollinearity. If an inverse relationship exists between the dependent variable and independent variables, the regression coefficients for the independent variables should be positive.

Explanation / Answer

Multicollinearity occurs if there is strong relationship between indepedent variables.

So the given statement is FALSE.

R^2 shows us the total variation explained the independent variables.

So the given statement is TRUE.

The standard error is estimate is calulated as the square root of mean square regression (MSR).

So the given statement is TRUE.

The coefficient of determination R^2 reports the proportion of the variation in Y that is explained by the variation in the set of independent variables.

So the given statement is FALSE.

The coefficient of multiple determination is R^2 that is report the proportion of the variation in Y that is explained by the variation in the set of independent variables.

So given statement is FALSE.

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