If multicollinearity exists, then individual interpretation of the variables is questionable, but the overall model is still good for prediction purposes.

Question

Quizplus · Accepted Answer

When multicollinearity exists, it becomes difficult to interpret the contribution of individual variables to the model as their effects become intertwined. However, the overall model can still be useful for making predictions.

If Multicollinearity Exists, Then Individual Interpretation of the Variables Is