In the presence of multicollinearity, OLS estimators remain consistent and unbiased, but they are not efficient because their variances become large, making the estimates less precise and statistically unreliable.
What will be properties of the OLS estimator in the presence of multicollinearity?
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This question is part of 📏 Arithmetic Aptitude within the broader 🧠 Aptitude Mastery subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.