Question 23 (3 points) Based on the correlation matrix below, which of the following statements is TRUE? Residuals Eamings Before Tax Operating Margin Profit Margin Residuals Earnings Before Tax Operating Margin Profit Margin 1 2.27816E-16 1 -2.0329E-15 -0.115790495 1 5.67552E-15 -0.077651867 0.826421926 The correlations between the residuals and each of the explanatory variables indicates that we might have biased coefficient estimates. The negative correlations between the residuals and each of the explanatory variables indicates that the variance of the error term changes for different values of the independent variables. The correlations of 1 along the diagonal of the matrix indicates that we have an issue with perfectly correlated explanatory variables. The correlation between Operating Margin and Profit Margin indicates that it might be difficult to find statistical significance for one or both of those variables. The negative correlation between Earnings Before Tax and Operating Margin indicates that an increase in Earnings Before Tax or Operating Margin would cause the dependent variable to decrease