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| Suppose there is evidence that the variance of the error term is correlated with the values of the independent variables. The most likely effect on the statistical inferences Smith can make from the regressions results is to commit a: A. Type I error by incorrectly rejecting the null hypotheses that the regression parameters are equal to zero. B. Type II error by incorrectly failing to reject the null hypothesis that the regression parameters are equal to zero. C. Type I error by incorrectly failing to reject the null hypothesis that the regression parameters are equal to zero. |