If the Correlation Between the Two Independent Variables of a Regression

question 36

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.

---

Definitions:

Bailee

A person or entity who is given temporary possession but not ownership of a property under a bailment agreement.

Trucking Company

A business entity that specializes in the transportation of goods and materials over land, typically using large vehicles like trucks.

Merchant

An individual or business entity engaged in the sale of goods or services, often characterized by expert knowledge or the ability to deal in a particular commercial field.

Physical Possession

The actual holding or control of an object, property, or asset by an individual or entity.