1.

A major concern that arises with multiple regression is multicollinearity, which

exists when:
a. in simple regression, when the dependent variable is not normally distributed
b. in simple regression, when the R2 statistic is low
c. in multiple regression, when the R2 statistic is low
d. in multiple regression, when two or more independent variables are correlated
with one another

Answer: d Difficulty: 2 Objective: A

Terms to Learn: multiple regression, multicollinearity

2. In multiple regression, when two or more independent variables are correlated with
one another, the situation is known as:
a. heteroscedasticity
b. homoscedasticity
c. multicollinearity
d. autocorrelation

Answer: c Difficulty: 2 Objective: A

Terms to Learn: multiple regression, multicollinearity