Question

Which of the following would indicate the possible presence of multicollinearity in a regression analysis? a. A significant p-value for a test of overall significance b. A high correlation between two or more independent variables c. A small value for the coefficient of determination d. All of these choices

Answer 1

The answer is B - A high correlation between two or more independent variables.

Explanation:

There are many factors that shows the possible presence of multicollinearity in a regression analysis. Multicollinearity occurs when independent variables in a regresssion model are correlated; the independent variables as their names implies is to be fully independent (on their own).

Based on the options; multicollinearity occurs when there is a high correlation between two or more independent variables.