A major concern that arises with multiple regression is multicollinearity, which exists when:
A)in simple regression, when the dependent variable is not normally distributed
B)in simple regression, when the R2 statistic is low
C)in multiple regression, when the R2 statistic is low
D)in multiple regression, when two or more independent variables are correlated with one another

Question

Quizplus · Accepted Answer

Multicollinearity exists in multiple regression when two or more independent variables are highly correlated with one another. This can cause issues with accurately estimating the unique effects of each independent variable on the dependent variable.

A Major Concern That Arises with Multiple Regression Is Multicollinearity