Mastering Multicollinearity

A situation where the dependent variable is not affected by any of the independent variables

A situation where the dependent variable is perfectly predicted by the independent variables

A situation where there is no correlation between the independent variables in a regression model

A situation where two or more independent variables in a regression model are highly correlated (correct)

Decreased standard errors of the regression coefficients

Perfect prediction of the dependent variable

No impact on the standard errors of the regression coefficients

Increased standard errors of the regression coefficients (correct)

By comparing the p-values of the regression coefficients

By examining the correlation matrix of the independent variables (correct)

By comparing the R-squared values of different regression models

By examining the correlation matrix of the dependent variable