If two or more independent variables are highly correlated, the regression analysis might suffer from the problem of multicollinearity.

Question

Quizplus · Accepted Answer

Multicollinearity occurs when two or more independent variables in a regression analysis are highly correlated with each other, which can cause problems in estimating the individual effects of each variable on the dependent variable. Therefore, the statement is true.

If Two or More Independent Variables Are Highly Correlated, the Regression