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Questions › UGC-NET › UGC-NET 2023 › Q60
2 marksEconometrics › Classical assumptions and their violations › MulticollinearityHardabout 2 min

UGC-NET 2023 Question 60: Classical assumptions and their violations

Which of the following are not symptoms of multicollinearity in a regression model?

A. High R^2 with few significant t ratios for coefficients.

B. High pair-wise correlations among regressors.

C. The closer the Tolerance (TOL) is to zero.

D. Variance Inflation Factor (VIF) of a variable is below 10.

E. The closer the Tolerance (TOL) is to 1.

Choose the correct answer from the option given below:

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Classical assumptions and their violations has come up 26 times in 7 exams since 2011.

What this question tests

This question is on Multicollinearity, part of Classical assumptions and their violations in Econometrics.

Highly correlated regressors: symptoms, consequences and the perfect case.

TestStop has 8 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2023 · Q32An analyst regressed Y on X₁ and X₂. If she later noticed that X₁=5X₂, then which of the following…
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