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2 years ago

Which of the following is true about multicollinearity?

Business

1 answer:

Komok [63]2 years ago

3 0

Answer:

d. It is best measured using the statistic variance inflation factor (VIF).

Explanation:

Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance

Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.

VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5 implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
VIF as a multicollinearity correction : Calculating $Var (\beta j )$ = σ^2 / $[TSS j (1 - R^2j)]$ ; where TSS = total sum of square of variable j , σ^2 = j variance, R^2 j = R^2 from regressing all other independent variable on variable j

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Wright Machinery Corporation manufactures automobile engines for major automobile producers. The engines sell for $910 per engin

goblinko [34]

Answer:

1. The sale of engines and service warranty on account during 2016 (one entry).

Dr Cash 8,820,000

Cr Sales revenue 8,190,000 (= 9,000 x $910)

Cr Unearned warranty revenue 630,000 (= 9,000 x $70)

2. The warranty costs paid during 2016.3. The warranty revenue earned in 2016.

to record warranty expenses during the year

Dr Warranty expense 93,400

Cr Cash 93,400

to record warranty revenue

Dr Unearned warranty revenue 126,000 (= $630,000 / 5 = $126,000)

Cr Extended warranty revenue 126,000

Explanation:

Service-type warranties sold are a liability for the company (unearned revenue) and they will be accrued as time goes on. In this case, accrued warranty revenue is adjusted annually but it could also be adjusted monthly.

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3 years ago

Small lean mean agencies which operate on low overheads and do quality work by hiring experts on job basis are called - Options

Harrizon [31]

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2 years ago

Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support

Arturiano [62]

Answer:

If patty sues, the likely result is:

D. Patty may win under the doctrine of promissory estoppel.

Explanation:

Here, in the given question it is mentioned that Patty is a student who is poor and he is struggling to work and also keep up with her studies inspite of the difficulties.

Her uncle, Fred, promises patty that he will help him in this situation and help her with an amount of $200 per month for the next six months.

Although her uncle, Fred didn't ask her to but patty by herself quits her job so that she gives her maximum time and attention to her studies for the six months in which her uncle was going to help her.

According to what hr uncle promised he gave her the amount which he promised to but this was done for a month and then without saying anything or giving any reason he stopped giving her the amount he promised to.

So, now in this scenario if patty sues the likely result would be:

d. Patty may win under the doctrine of promissory estoppel.

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2 years ago

Novak Corp. has 44,000 shares of $11 par value common stock outstanding. It declares a 11% stock dividend on December 1 when the

Aleonysh [2.5K]

Answer:

in my best defence, the answer is 22

Explanation:

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2 years ago

Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 an

kykrilka [37]

Which describes the cross section of the rectangular prism that passes through vertices A, B, C, and D?

(A rectangular prism with measurements 3 centimeters, 10 centimeters, 6 centimeters.)

a rectangle with two 10-cm sides and two 6-cm sides
a rectangle with two 10-cm sides and two sides that are longer than 6 cm
a nonrectangular parallelogram with two 10-cm sides and two 6-cm sides
a nonrectangular parallelogram with two 10-cm sides and two sides that are longer than 6 cm

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3 years ago