A term used to describe the case when the independent variables in a multiple re

Question

A term used to describe the case when the independent variables in a multiple regression model are highly correlated is: A term used to describe the case when the independent variables in a multiple regression model are highly correlated is: a) regression b) correlation c) multicollinearity d) None of the above answers are correct In a multiple regression model, the signs of the coefficients might be reversed if there is: a) a high value of t associated with any of the independent variables b) residual regression c) low correlation among the independent variables d) multicollinearity

Explanation / Answer

Ans 1 is

(C)multicollinearity

when there is a correlation between independent variable or explanatory variable exit then a problem of multicollinearity arises

MORE EXplnation

Corrrelation is a linear relaationship between two variable X,Y

and Regression means when we have single dependent variable and a number of explanatoty variable are regressed on dependent variable

ANS 2

option (D) multicollinearity,

because in multiple regression the sign of coefficient might be reversed if there is "multicollinearity "

because if independent variable are positively correlated then Corressponding oifficient are negatively correlated

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