A researcher commented on this estimated equation: “Multicollinearity could be a factor as indicated by the very high standard error and the small t value.”

( ): standard errors [ ]: t values

a. In general, how does multicollinearity affect the standard errors and t values?

b. Why is it clear that multicollinearity is not a problem here?

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Y 1,146.0+1.4312X, R2 = 0 (195.6) (71.6) [5.86] [0.02]