When two or more independent variables in a regression model are highly correlated, it's known as ________.

  • Collinearity
  • Interaction
  • Multicollinearity
  • Overfitting
This is known as multicollinearity. In regression analysis, multicollinearity refers to a situation where two or more independent variables are highly correlated. This can make it difficult to determine the effect of each individual variable on the dependent variable and can lead to unstable and unreliable estimates.
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