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Basic Question 2 of 3

Multicollinearity in linear regression is caused by:

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.

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danlan2 This is the definition
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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

Martin Rockenfeldt

Learning Outcome Statements

describe influence analysis and methods of detecting influential data points;

CFA® 2025 Level II Curriculum, Volume 1, Module 3.