What is multicollinearity

Reference no: EM13695177

(i) What is multicollinearity? What effects does it have on estimation and inference in the multiple regression models?

(ii)Explain briefly why the consequences of omitting an important variable from a regression are typically more serious than including a redundant one?

(iii) With the use of an example, explain the dummy variable trap and its consequences?

Reference no: EM13695177

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