Which of the following will result from running a regression model with a high degree of correlation among the independent variables?   The OLS estimates will be biased The t-statistics become highly significant The hypothesis testing procedures remain valid None of the above

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 24PFA
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Which of the following will result from running a regression model with a high degree of correlation among the independent variables?

 

  1. The OLS estimates will be biased
  2. The t-statistics become highly significant
  3. The hypothesis testing procedures remain valid
  4. None of the above
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