What is multicolinearity and why is it important?
What will be an ideal response?
. Multicolinearity is the inter-correlations among predictors. X, for instance, will normally not be correlated just with Y but to other variables V, W, Z, …as well. This multicolinearity creates all sorts of problems. We have to pay attention to standard errors and statistical tests based on them. More technically, the standard error of a partial regression coefficient for a variable, say X, depends partly on the strength of its correlation with other independent variables in the model. As variables are added and dropped from a model in an attempt to find one with the highest R2, standard errors may flop around and make hypothesis testing problematic.
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Brazil was a colony of ____________
a. Spain b. the United States c. Britain d. Portugal
The Social Security system is
A) funded solely by employees' contributions through wages. B) protected by the Federal Deposit Insurance Corporation (FDIC). C) a pay-as-you-go system where those currently working support those who are retired. D) funded by a progressive tax on income. E) essentially, a private pension fund.