In a Multiple Regression Analysis, the Following Correlation Matrix Was

question 96

Multiple Choice

In a multiple regression analysis, the following correlation matrix was computed. What does the correlation matrix suggest about the independent variables?

• A) X₁ and X₂ are correlated.
• B) No correlation between the independent variables.
• C) All 4 independent variables are highly correlated with each other, therefore multicollinearity exists.
• D) X₁ and X₄.
• E) X₂ and X₄ are correlated as well as X₁ and X_3; therefore multicollinearity exists.

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