In regression analysis,multicollinearity refers to:
A) the response variables being highly correlated
B) the explanatory variables being highly correlated
C) the response variable(s)and the explanatory variable(s)are highly correlated with one another
D) the response variables are highly correlated over time.

Question

Quizplus · Accepted Answer

Multicollinearity refers to the situation where the explanatory variables in a regression model are highly correlated with each other. This can cause issues with accurately estimating the individual effect of each explanatory variable on the response variable.

In Regression Analysis,multicollinearity Refers To