In regression analysis, multicollinearity refers to:
A) the response variables being highly correlated with one another
B) the predictor variables being highly correlated with one another
C) the response variable and the predictor variables are highly correlated with one another
D) the response variables are highly correlated over time
E) the predictor variables are highly correlated over time

Question

Quizplus · Accepted Answer

Multicollinearity refers to high correlation among predictor variables, which can lead to unstable and unreliable estimates of the regression coefficients. Highly correlated response variables would not necessarily affect the stability of the regression coefficients. Correlation over time is not relevant to multicollinearity.

In Regression Analysis, Multicollinearity Refers To