Inspection of the following table of correlation coefficients for variables in a multiple regression analysis reveals potential multicollinearity with variables ___________. A) x₁ and x₂ B) x₁ and x₅ C) x₃ and x₄ D) x₂ and x₅ E) x₃ and x₅

Question

Quizplus · Accepted Answer

The table of correlation coefficients reveals a correlation coefficient of 0.74 between x₂ and x₅, indicating potential multicollinearity between these variables. The other correlation coefficients are not as high and do not indicate as strong of a potential for multicollinearity. Therefore, the best choice is D.

Inspection of the Following Table of Correlation Coefficients for Variables