Which of the following situations will result in the best prediction in multiple regression analysis? A) r_Y₁ = 0.1 r_Y₂ = 0.4 r₁₂ = 0.1 B) r_Y₁ = 0.1 r_Y₂ = 0.4 r₁₂ = 0.8 C) r_Y₁ = 0.6 r_Y₂ = 0.4 r₁₂ = 0.1 D) r_Y₁ = 0.6 r_Y₂ = 0.4 r₁₂ = 0.8

Question

Quizplus · Accepted Answer

In multiple regression analysis, the best prediction is achieved when the independent variables have high correlations with the dependent variable and low correlations with each other. Choice C shows high correlations between the independent variables and the dependent variable (0.6 and 0.4) and a low correlation between the independent variables themselves (0.1), minimizing multicollinearity and enhancing the model's predictive power.

Which of the Following Situations Will Result in the Best