Which of the following statements regarding multicollinearity is not true?
A) It exists in virtually all multiple regression models.
B) It is also called collinearity and intercorrelation.
C) It is a condition that exists when the independent variables are highly correlated with the dependent variable.
D) It does not affect the F-test of the analysis of variance.
E) It exists in virtually all multiple regression models and it is also called collinearity and intercorrelation.

Question

Quizplus · Accepted Answer

Multicollinearity is a condition that exists when the independent variables are highly correlated with each other in a multiple regression model, not with the dependent variable. Option A, B, and E are true statements. Option D is partially true, as multicollinearity does not affect the overall F-test of the model, but it can impact the individual p-values and coefficients of the independent variables.

Which of the Following Statements Regarding Multicollinearity Is Not True