Multicollinearity is when there _____ among the independent variables in a regression equation. For the person wanting to do a regression analysis, multicollinearity is a _____ thing.
A) are no very strong correlations . . . bad
B) are no very strong correlations . . . good
C) is at least one very strong correlation . . . bad
D) is at least one very strong correlation . . . good

Question

Quizplus · Accepted Answer

Multicollinearity is when at least one very strong correlation exists among the independent variables in a regression equation. This is a bad thing for the person wishing to do a regression analysis because it can result in unreliable and inconsistent coefficients, making it difficult to interpret the impact of each independent variable on the dependent variable.

Multicollinearity Is When There _____ Among the Independent Variables in a Regression