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)All of these choices are true.

Question

Quizplus · Accepted Answer

Multicollinearity is a condition that exists when the independent variables in a multiple regression model are highly correlated with each other, rather than with the dependent variable. Statement C incorrectly suggests that multicollinearity occurs when the independent variables are highly correlated with the dependent variable.

Which of the Following Statements Regarding Multicollinearity Is Not True