How does multicollinearity affect the coefficients in multiple linear regression?
- It doesn't affect the coefficients
- It makes the coefficients less interpretable
- It makes the coefficients more precise
- It makes the coefficients negative
Multicollinearity refers to a situation where two or more predictor variables in a multiple regression model are highly correlated. This high correlation can result in unstable coefficient estimates, making them less reliable and harder to interpret.
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