Multicollinearity,a major concern that arises with multiple regressions,exists when in:
A)multiple regressions,when the R2 statistic is low.
B)simple regression,when the dependent variable is not normally distributed.
C)simple regression,when the R2 statistic is low.
D)multiple regressions,when two or more independent variables are correlated with one another.

Question

Quizplus · Accepted Answer

Multicollinearity occurs in multiple regressions when two or more independent variables are highly correlated with each other, which can lead to unreliable and unstable coefficient estimates. This issue does not depend on the R2 statistic or the normality of the dependent variable, and is not a concern in simple regression where only one independent variable is being used.

Multicollinearity,a Major Concern That Arises with Multiple Regressions,exists When In