Inspection of the following table of correlation coefficients for variables in a multiple regression analysis reveals potential multicollinearity with variables ___. A)x₁ and x₅ B)x₂ and x₃ C)x₄ and x₂ D)x₄ and x₃ E)x₄ and y

Question

Quizplus · Accepted Answer

The correlation coefficient between x₄ and x₂ is 0.76, which is relatively high and suggests potential multicollinearity between these two variables. The other correlation coefficients listed are either low or moderate, indicating less of a concern for multicollinearity. The option E is incorrect as y is not a variable listed in the table.

Inspection of the Following Table of Correlation Coefficients for Variables