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In regression analysis, multicollinearity indicates that __________ The dependen

ID: 3339255 • Letter: I

Question

In regression analysis, multicollinearity indicates that __________

The dependent variables are highly correlated

The independent variables are highly correlated

The independent variables and the dependent variables are highly correlated

The dependent variables are highly correlated over time

A.

The dependent variables are highly correlated

B.

The independent variables are highly correlated

C.

The independent variables and the dependent variables are highly correlated

D.

The dependent variables are highly correlated over time

Explanation / Answer

Multicollinearity exists when two or more of the independent variables in a regression model are moderately or highly correlated.Thus correct answer is B

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