The problem of multicollinearity arises when:
a. the dependent variables are highly correlated with one another
b. the independent variables are highly correlated with one another
c. the independent variables are highly correlated with the dependent variable
d. the independent variables are not correlated with each other
e. none of these
Question 2
Which of the following statements regarding multicollinearity is not true?
a. It exists in virtually all multiple regression models.
b. It is also called collinearity and intercorrelation.
c. It is a condition that exists when the independent variables are highly correlated with the dependent variable.
d. It does not affect the F-test of the analysis of variance.
e. It exists in virtually all multiple regression models and it is also called collinearity and intercorrelation.
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