Multicollinearity refers to a situation in which
A) successive error terms derived from the application of regression analysis to time-series data are correlated.
B) there is a high degree of correlation between the independent variables included in a multiple regression model.
C) the dependent variable is highly correlated with the independent variable(s) in a regression analysis.
D) the application of a multiple regression model yields estimates that are nonlinear in form.

Question

Quizplus · Accepted Answer

Multicollinearity occurs when there is a high degree of correlation among the independent variables in a regression model, which can make it difficult to determine the individual effect of each variable on the dependent variable.

Multicollinearity Refers to a Situation in Which