In a stepwise regression procedure, if two independent variables are highly correlated, then:
A) both variables will enter the equation.
B) only one variable will enter the equation.
C) neither variable will enter the equation.
D) None of these choices are correct.

Question

Quizplus · Accepted Answer

In stepwise regression, when two independent variables are highly correlated, only one variable will likely provide a significant increase in the model's explanatory power. Therefore, the model will select and retain only one of the highly correlated variables, and the other variable will not enter the equation.

In a Stepwise Regression Procedure, If Two Independent Variables Are