What is the effect of multicollinearity in a linear regression model?

Practice Questions

Q1
What is the effect of multicollinearity in a linear regression model?
  1. It improves model accuracy
  2. It makes coefficient estimates unstable
  3. It has no effect on the model
  4. It simplifies the model

Questions & Step-by-Step Solutions

What is the effect of multicollinearity in a linear regression model?
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