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. None of these choices.
Analysis:
A. Incorrect. The condition is called multicollinearity.
B. Incorrect. The condition is called multicollinearity.
C. Correct. The condition is called multicollinearity.
D. Incorrect. The condition is called multicollinearity.
ANSWER : C
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