Which of the following are plausible approaches in dealing with a model that exhibits serious multicollinearity? (i) Use a different functional form (il) Use suitably modified standard errors. (ill) Use a generalised least squares procedure on (iv) Use theory as the basis for this decision. ielect one: (1) and (iv) only (1). (11), (lli), and (Iv) (1). (i1), and (iv) only (i1) and (iv) only (1) and (ili) only Previous page Next page13 When the dependent variable in a model contains measurement error: it of Select one: None of the answers provided here are correct uestion the consequences are the same as those of omitting a relevant variable. the variances of the estimators are higher, but the coefficients are unbiased. the OLS estimators are biased. O the error terms are correlated with the explanatory variables.A good model should have the property of parsimony, which means that: Select one: The adjusted R" must be as high as possible in the model should be as simple as possible. the estimated parameter values should be consistent with theory. the estimated parameters should have unique values. predictions of the model should be borne out by actual experience.Since consumers do not change their consumption habits readily due to psycho technological, or institutional reasons, will be a problem in a con elect one: Autocorrelation. Heteroscedasticity. Model misspecification. Both autocorrelation and heteroskedasticity. O Multicollinearity