When multicollinearity is present, the regression model is of no use for making predictions.

Question

Quizplus · Accepted Answer

While multicollinearity can make it difficult to determine the individual impact of each predictor on the outcome variable, it does not necessarily make the entire regression model useless for making predictions. There are ways to address multicollinearity, such as removing highly correlated predictors or using techniques like ridge regression.

When Multicollinearity Is Present, the Regression Model Is of No