If the Correlation Between the Two Independent Variables of a Regression

question 47

Multiple Choice

If the correlation between the two independent variables of a regression analysis is 0.11 and each independent variable is highly correlated to the dependent variable, what does this indicate?

• A) Multicollinearity between these two independent variables
• B) Negative relationship is not possible
• C) Only one of the two independent variables will explain a high percent of the variation
• D) An effective regression equation
• E) None of these statements are correct

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Definitions:

Type I Error

The error made in statistical hypothesis testing when a true null hypothesis is incorrectly rejected.

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