When confronted with multicollinearity, a good remedy is to ________ if we can justify its redundancy.
A) add one more collinear variable
B) drop one of the collinear variables
C) remove both the collinear variables
D) add as many collinear variables as possible

Question

Quizplus · Accepted Answer

In the case of multicollinearity, we should drop one of the collinear variables. This is because collinear variables add redundant information to the model, which can lead to unstable coefficients and a decrease in predictive power. By dropping one of the collinear variables, we can reduce the redundancy in the model and improve its stability and overall performance.

When Confronted with Multicollinearity, a Good Remedy Is to ________