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. All of these choices are true.


Analysis:
A. Incorrect. It is a condition that exists when the independent variables are highly correlated with the dependent variable is not true.
B. Incorrect. It is a condition that exists when the independent variables are highly correlated with the dependent variable is not true.
C. Correct. It is a condition that exists when the independent variables are highly correlated with the dependent variable is not true.
D. Incorrect. It is a condition that exists when the independent variables are highly correlated with the dependent variable is not true.
ANSWER : C

Business

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