A major concern that arises with multiple linear regression is multicollinearity, which exists A) in simple linear regression, when the dependent variable is not normally distributed. B) in simple linear regression, when the r² statistic is low. C) in multiple linear regression, when the r² statistic is low. D) in multiple linear regression, when two or more independent variables are correlated with one another. E) in multiple linear regression, when spurious correlation exists.

Question

Quizplus · Accepted Answer

Multicollinearity occurs in multiple linear regression when two or more independent variables are highly correlated with each other, which can cause problems in estimating the coefficients of the regression equation. It is not a concern in simple linear regression, and options A, B, and E are incorrect. Option C is also incorrect as the r² statistic does not exist.

A Major Concern That Arises with Multiple Linear Regression Is