Question Three a) Explain the term multicollinearity. b) State and explain three practical consequences of multicollinearity c) State whether the following statements are true or false or uncertain i) ii) iii) Despite perfect multicollinearity, OLS estimators are best, linear unbiased estimators (BLUE) Multicollinearity is harmless if the objective of the analysis is prediction only. If an auxiliary regression shows that a particular R is high, there is definite evidence of high collinearity d) Consider the following three variable regression equation YtB1B2X2+ + 3X3+ + t The following is the formula for calculating the variance of 2 Var(B2)= () (x)-(2030)2 02 Show that Var (B2) is undefined if we let x3t = x2t. Explain.