Asked by Salomé Daraselia on May 26, 2024

verifed

Verified

When the independent variables are correlated with one another in a multiple regression analysis, this condition is called:

A) heteroscedasticity
B) homoscedasticity
C) multicollinearity
D) causality
E) collinearity

Independent Variables

Variables that are manipulated or changed in an experiment to see if they affect an outcome.

Multiple Regression

A mathematical method that utilizes multiple predictor variables to forecast the result of a dependent variable.

  • Grasp the meaning and fallout of multicollinearity in the sphere of regression analysis.
  • Distinguish between multicollinearity and other concepts such as homoscedasticity, heteroscedasticity, and causality.
verifed

Verified Answer

IW
Isabel WeberMay 29, 2024
Final Answer :
C
Explanation :
Multicollinearity occurs when the independent variables in a multiple regression model are highly correlated with each other, which can lead to issues with interpreting the coefficients and making accurate predictions. Heteroscedasticity refers to unequal variance in the residuals, homoscedasticity refers to equal variance in the residuals, causality refers to a direct relationship between two variables, and collinearity is a more general term that can refer to any type of correlation between variables.