When the correlations between independent variables in regression are high enough to cause problems, one approach is to create summated scales consisting of the independent variables that are highly correlated.

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This approach is called creating composite variables or creating factor scores. Summated scales or indices are a specific type of composite variable that involves adding together multiple items or variables to create a single score. However, the overall approach of combining highly correlated variables is generally referred to as creating composite variables.

When the Correlations Between Independent Variables in Regression Are High