madaochenggong

CFAI Mock afternoon had exactly this question, and I used CPK's logic to answer it. I didn't even RTFQ.

Of course I got it wrong since there was no F stat given


Instead the fine print gave the R^2 between the TWO independent variables as 0.3 . The answer claimed that this was low , hence no multi-collinearity

madaochenggong

i looked it up, the correlation is .3
the r^2 is .40

the answer B

They don't mention r^2 at all in the explanation. I don't see a relation in the answer.