In multiple regression, because of a commonly occurring problem called multicollinearity, the
t-tests of the individual coefficients may indicate that some independent variables are not linearly related to the dependent variable, when in fact they are.

Question

Quizplus · Accepted Answer

Multicollinearity can lead to inflated standard errors and t-values, which may result in incorrectly concluding that some variables are not significant predictors when they actually are.

In Multiple Regression, Because of a Commonly Occurring Problem Called