A research analysis should deal with multicollinearity among variables in a regression analysis by _____.
A) choosing one of the variables and eliminating the others
B) creating a new composite variable based on the intercorrelated variables for use in the regression analysis
C) indicating that multicollinearity exists in the limitations section of the research report
D) eliminating all of the intercorrelated variables from the analysis
E) both a and b

Question

Quizplus · Accepted Answer

Multicollinearity among variables in a regression analysis can be addressed by either choosing one of the variables and eliminating the others or creating a new composite variable based on the intercorrelated variables. Both approaches aim to reduce the redundancy and the potential distortion in the estimation of regression coefficients caused by multicollinearity.

A Research Analysis Should Deal with Multicollinearity Among Variables in a Regression