Which of the following refers to a relatively high correlation among the independent variables of a regression equation?
A)autocorrelation
B)the identification problem
C)statistically insignificant regression coefficients
D)multicollinearity

Question

Quizplus · Accepted Answer

Multicollinearity refers to a situation in which there is a high correlation between two or more independent variables in a regression equation. This can cause problems such as unstable and statistically insignificant regression coefficients, making it difficult to identify the relationship between the independent variables and the dependent variable.

Which of the Following Refers to a Relatively High Correlation