Which of the following correctly describes multicollinearity?
A)A condition occurring when two or more independent variables in the same regression model can predict each other better than the dependent variable.
B)A condition occurring when the standard residual in a regression model takes a zero value.
C)A condition occurring when the value of the regression coefficient is the same for two or more dependent variables.
D)A condition occurring when two or more dependent variables in the same regression model have a correlation coefficient equal to zero.

Question

Quizplus · Accepted Answer

Multicollinearity occurs when two or more independent variables in a regression model are highly correlated with each other, making it difficult to determine the individual effect of each variable on the dependent variable. It does not involve the dependent variable or the standard residual.

Which of the Following Correctly Describes Multicollinearity