The problem of multicollinearity arises when the:
A)dependent variables are highly correlated with one another.
B)independent variables are highly correlated with one another.
C)independent variables are highly correlated with the dependent variable.
D)None of these choices.

Question

Quizplus · Accepted Answer

Multicollinearity occurs when there is a high degree of correlation between the independent variables in a regression model, which can cause issues with interpreting the coefficients and making accurate predictions. This is not related to the correlation between the dependent variables or between the independent variables and the dependent variable.

The Problem of Multicollinearity Arises When The