Multicollinearity occurs when a. an explanatory variable is highly correlated with another explanatory variable b. the dependent variable is highly correlated with all of the explanatory variables c. the error term is highly correlated with an explanatory variable d. the error term is highly correlated with the dependent variable Clear my choice
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Multicollinearity refers to a situation in which two or more explanatory variables in a multiple regression model are highly correlated. This means that one variable can be linearly predicted from the others with a substantial degree of accuracy. Show more…
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