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.

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