When two or more "independent" variables are highly correlated,then we have:
A) the identification problem
B) multicollinearity
C) autocorrelation
D) heteroscedasticity
E) complementary products

Question

Quizplus · Accepted Answer

Multicollinearity occurs when two or more independent variables are highly correlated, leading to problems in estimating the coefficients of the regression model. This can make it difficult to interpret the individual effects of each independent variable and can result in unstable and unreliable estimates of the model parameters.

When Two or More "Independent" Variables Are Highly Correlated,then We