multicollinearity

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multicollinearity Multicollinearity occurs where there is a high correlation between two or more independent variables in a regression analysis. There is considerable disagreement about the degree of correlation that must exist between independent variables before they are considered to be multicollinear. Extreme multicollinearity (for example a correlation of .70 or higher between two independent variables) has adverse effects on the standard errors of the regression coefficients (and hence on tests of their statistical significance and confidence intervals).

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