The problem of collinearity occurs when
A) at least one predictor var. has a nonlinear relationship with the response variable.
B) there is an influential observation in the data set.
C) none of these
D) more than one predictor variable is linearly related to the response variable.
E) two or more predictor variables are linearly related to each other.

Question

Quizplus · Accepted Answer

Collinearity occurs when two or more predictor variables in a regression model are highly linearly related to each other, making it difficult to isolate the individual effect of each predictor.

The Problem of Collinearity Occurs When