Question

________ is a state of very high intercorrelations among independent variables.

• A. Hypercollinearity
• B. Partial collinearity
• C. Multicollinearity
• D. Variable collinearity

Hint:

Multicollinearity inflates standard errors and reduces the reliability of coefficient estimates in regression.

Answer 1

The Correct Option is C

Step 1: Understanding the concept.
In regression, when independent variables are highly correlated, it becomes difficult to separate their individual effects. This condition is called multicollinearity.
Step 2: Eliminate distractors.
(a) Hypercollinearity — informal term, not standard in statistics.
(b) Partial collinearity — refers to correlation among some variables, but not the general phenomenon.
(d) Variable collinearity — descriptive but not the official term.
\[ \boxed{(c)} \]