Essentials of Marketing Research 3rd Edition by Joseph Hair ,Mary Celsi ,Robert Bush,David Ortinau

Exercise 4

When multiple independent variables are used to predict a dependent variable in multiple regression, multicollinearity among the independent variables is often a concern. What is the main problem caused by high multicollinearity among the independent variables in a multiple regression equation? Can you still achieve a high r 2 for your regression equation if multicollinearity is present in your data?