What Should We Do When We Have Multicollinearity

question 4

Multiple Choice

What should we do when we have multicollinearity?

• A) Ignore it no matter what.
• B) Drop some of the independent variables.
• C) Consider testing whether the highly collinear variables are jointly significant.
• D) Add more independent variables in order to reduce multicollinearity.

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Definitions:

Social Structures

The complex framework of societal institutions (such as laws, the economy, and social norms) and the relationships among those institutions that determine the pattern of human interaction.

Race

A social construct used to categorize humans based on physical and ancestral characteristics, influencing identities and social positions.

Attribute

A quality or characteristic belonging to a person, thing, or group.

Individuals

Single human beings, as distinct from groups or collectives.