When does multicollinearity occur in a multiple regression analysis?
A) Dependent variables are highly correlated
B) Independent variables are minimally correlated
C) Independent variables are highly correlated
D) Independent variables have no correlation
E) None of these statements are correct

Question

Quizplus · Accepted Answer

Multicollinearity occurs when independent variables in a multiple regression model are highly correlated with each other, which can make it difficult to determine the individual effect of each independent variable on the dependent variable.

When Does Multicollinearity Occur in a Multiple Regression Analysis