If two predictor variables to be used in developing a multiple regression equation both correlate with the criterion variable at .75, what correlation coefficient between the two predictor variables would lead to the most efficient regression equation?
A) .00
B) .25
C) .75
D) .95

Question

Quizplus · Accepted Answer

The most efficient regression equation would have predictor variables that are highly correlated with the criterion variable, but not highly correlated with each other. Therefore, the correlation coefficient between the two predictor variables should be as close to 0 as possible.

If Two Predictor Variables to Be Used in Developing a Multiple