Question: Determine if the following statement is true or false. If you believe that the statement is false, briefly explain why you think it is false.

Determine if the following statement is true or false. If you believe that the statement is false, briefly explain why you think it is false.

The use of correlated explanatory variables in a multiple regression implies collinearity in the model.

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Part 1

Choose the correct answer below.

A.

This statement is false because collinearity is unrelated to the use of correlated explanatory variables.

B.

This statement is false because the presence of correlated explanatory variables violates an assumption of the multiple regression model.

C.

This statement is false because collinearity is determined using the variance inflation factor.

D.

This statement is true.

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