Which of the following regression diagnostic tools is used to study the possible presence of multicollinearity?
A)heteroscedasticity
B)residual plot
C)scatter diagram
D)correlation matrix

Question

Quizplus · Accepted Answer

The correlation matrix is used to study the possible presence of multicollinearity, which measures the strength and direction of the linear relationship between pairs of variables in a dataset. Multicollinearity occurs when there are high correlations between independent variables, which can interfere with the interpretation of the coefficients and the predictive power of the model. Therefore, it is important to check for multicollinearity before fitting a regression model to avoid biased or unstable estimates. The other options listed - heteroscedasticity, residual plot, and scatter diagram - are diagnostic tools that are used to investigate other assumptions of linear regression, such as the presence of heterogeneity variance, linearity, and outliers, respectively.

Which of the Following Regression Diagnostic Tools Is Used to Study