PRMIA Exam 8007 Topic 1 Question 10 Discussion

Actual exam question for PRMIA's Mathematical Foundations of Risk Measurement ? 2015 Edition exam

Question #: 10
Topic #: 1

Which of the following can induce a 'multicollinearity' problem in a regression model?

AA large negative correlation between the dependent variable and one of the explanatory variables

BA high positive correlation between the dependent variable and one of the explanatory variables

CA high positive correlation between two explanatory variables

DThe omission of a relevant explanatory variable

Show Suggested Answer

Suggested Answer: C

by Kristofer at May 06, 2022, 11:09 PM

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