In multiple regressions,when two or more independent variables are correlated with one another,the situation is known as:
A)multicollinearity.
B)heteroscedasticity.
C)homoscedasticity.
D)auto-correlation.

Question

Quizplus · Accepted Answer

Multicollinearity occurs when there is a high correlation between two or more independent variables in a multiple regression model. This can lead to inaccurate coefficient estimates and difficulties in interpreting the results. Heteroscedasticity refers to the unequal variance of errors in a regression model, homoscedasticity refers to equal variance of errors, and autocorrelation refers to the correlation between errors in a time series.

In Multiple Regressions,when Two or More Independent Variables Are Correlated