What are practical consequences of multicollinearity?

      

What are practical consequences of multicollinearity?

  

Answers


John
1. Wrong signs of regression coefficients.
2. Nonsense regression results.
3. Large variances and standard errors of ordinary least square estimators.
4. Wider confidence intervals.
5. Difficulty in assessing individual contribution of explanatory variables to explained sum of squares.
Jonmhumble answered the question on October 30, 2017 at 19:29


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