If two or more independent variables are highly correlated with each other,multicollinearity is present,and the partial regression coefficients will be unreliable.

Question

Quizplus · Accepted Answer

Multicollinearity can cause the partial regression coefficients to have high standard errors and be unstable, making them unreliable for interpreting the effects of individual variables on the dependent variable.

If Two or More Independent Variables Are Highly Correlated with Each