When the independent variables are correlated with one another in a multiple regression analysis,this condition is called:
A)heteroscedasticity.
B)homoscedasticity.
C)multicollinearity.
D)None of these choices.

Question

Quizplus · Accepted Answer

Multicollinearity refers to the situation when two or more independent variables in a multiple regression analysis are highly correlated with one another. This can cause problems in the regression analysis, as it becomes difficult to determine the independent effect of each variable on the dependent variable. Heteroscedasticity refers to the unequal variance of the residuals, while homoscedasticity refers to the equal variance of the residuals. Neither of these conditions directly relates to the correlation between independent variables in a multiple regression analysis.

When the Independent Variables Are Correlated with One Another in a Multiple