If two items in an index are perfectly correlated,both of them should be eliminated from the index.

Question

Quizplus · Accepted Answer

If two items in an index are perfectly correlated, it means that they move in the same direction and have a strong relationship. In this case, keeping both items in the index provides additional information about the overall performance of the index. Eliminating one of the items may result in a loss of important information and bias the index. Therefore, it is not necessary to eliminate both items.

If Two Items in an Index Are Perfectly Correlated,both of Them