When independent variables in a multiple regression equation are highly correlated among themselves,it indicates the existence of ____.The statistics used to measure if this exists is called VIF.
A)unstandardized coefficients
B)standardized coefficients
C)multicollinearity
D)standard error
E)standard deviation

Question

Quizplus · Accepted Answer

When independent variables in a multiple regression equation are highly correlated among themselves, it indicates the existence of multicollinearity. Multicollinearity can be measured using a statistic called VIF (Variance Inflation Factor), which calculates the extent to which the variance of the estimated regression coefficient is increased due to multicollinearity. Therefore, the best choice is C.

When Independent Variables in a Multiple Regression Equation Are Highly