When Does Multicollinearity Occur in a Multiple Regression Analysis

question 69

Multiple Choice

When does multicollinearity occur in a multiple regression analysis?

• A) The dependent variables are highly correlated.
• B) The regression coefficients are correlated.
• C) The independent variables are highly correlated.
• D) The independent variables have no correlation.

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Definitions:

Substitute

In a legal or contractual context, to replace one obligation, duty, or individual with another.

Cash

represents money in the physical form of currency, such as coins and banknotes, used to purchase goods, services, or settle debts.

Certify

To officially recognize, verify, or declare something as true, accurate, or in compliance with certain standards.

Sufficient Funds

Availability of enough money or resources to meet financial obligations or complete transactions.