If the purpose of the regression model is to provide a prediction for the dependent variable, the presence of multicollinearity provides unreliable results.

Question

Quizplus · Accepted Answer

Multicollinearity primarily affects the interpretation of the coefficients and their significance levels, not the model's ability to predict the dependent variable accurately. The prediction accuracy can still be high even if multicollinearity is present in the model.

If the Purpose of the Regression Model Is to Provide