Q489
Situation in which two or more independent variables are highly correlated is known as
A.
price linearity
B.
cost linearity
C.
division linearity
D.
multi-collinearity
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Situation in which two or more independent variables are highly correlated is known as multi-collinearity. Multicollinearity is the occurrence of high intercorrelations among independent variables in a multiple regression model.