One of the assumptions of regression analysis is ________.
A) there is perfect multicollinearity among some explanatory variables
B) there is no perfect multicollinearity among any explanatory variables
C) there is some degree of multicollinearity among some explanatory variables
D) None of these choices is correct.

Question

Quizplus · Accepted Answer

The assumption of no perfect multicollinearity among any explanatory variables is required in regression analysis. This means that none of the independent variables are perfectly correlated with each other, as such high correlation can cause problems in accurately estimating the coefficients. However, some degree of multicollinearity can still be present and can be addressed by techniques such as regularization.

One of the Assumptions of Regression Analysis Is ________