In measuring the outputs of her program, an analyst found that one of the independent variables she is using is a perfectly correlated to another, forcing her to use only one of the two in her multiple regression analysis .This is an example of:
A)Perfect multicollinearity
B)Perfect magnitude
C)Extreme correlation
D)Flawless relatedness

Question

Quizplus · Accepted Answer

Perfect multicollinearity occurs when one independent variable in a regression model is an exact linear combination of another. In such cases, it becomes impossible to independently determine the effect of each variable on the dependent variable, necessitating the removal of one of the variables to avoid distortion in the analysis.

In Measuring the Outputs of Her Program, an Analyst Found