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Basic Question 2 of 3
Multicollinearity in linear regression is caused by:
II. The dependent variable and an independent variable being highly correlated with each other.
III. Two or more dependent variables being highly correlated with each other.
IV. Two or more independent variables being highly correlated with each other.
I. Heteroskedastic and serially correlated residuals.
II. The dependent variable and an independent variable being highly correlated with each other.
III. Two or more dependent variables being highly correlated with each other.
IV. Two or more independent variables being highly correlated with each other.
User Contributed Comments 1
| User | Comment |
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| danlan2 | This is the definition |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.

Martin Rockenfeldt
Learning Outcome Statements
describe influence analysis and methods of detecting influential data points;
CFA® 2025 Level II Curriculum, Volume 1, Module 3.