When does multicollinearity occur in a multiple regression model?
A)when the dependent variables are highly correlated
B)when the independent variables are minimally correlated
C)when the independent variables are highly correlated
D)when the independent variables have no correlation at all

Question

Quizplus · Accepted Answer

Multicollinearity occurs when the independent variables in a multiple regression model are highly correlated. This means that these independent variables are providing redundant or overlapping information, which can make it difficult to determine the individual impact of each variable on the dependent variable.

When Does Multicollinearity Occur in a Multiple Regression Model