The correlation between the two independent variables of a multiple regression a

Question

The correlation between the two independent variables of a multiple regression analysis is -0.91. However, each of these two independent variables is also highly correlated to the dependent variable, what does this indicate? There is no violation of the assumptions for the multiple regression analysis. Both independent variables should be used to predict the dependent variable. Only one of the independent variables should be used in the regression equation. Cannot conduct any regression analysis.

Explanation / Answer

Remedies for high correlation between the independent variables are either we can drop one of the 2 variables ( for which we get the greater regression R2 ) or we could combine the 2 variables using the partial least squares. Here in the given options we are not given an option for combining variables, therefore the only way here would be to drop one of the 2 variables.

Therefore the correct answer here is:

Only one of the independent variables should be used in the regression equation.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.