What is it called when the independent variables are highly correlated?
A) Autocorrelation
B) Multicollinearity
C) Homoscedasticity
D) Zero correlation

Question

Quizplus · Accepted Answer

When independent variables are highly correlated, it is called multicollinearity. This can lead to unstable and unreliable regression coefficient estimates, and can make it difficult to interpret the effects of individual independent variables on the dependent variable. Therefore, it is important to identify and address multicollinearity in regression analysis.

What Is It Called When the Independent Variables Are Highly