Regression analysis and problems of multicollinearity

Communications in Statistics - Theory and Methods 01/1975; 4:277-292. DOI: 10.1080/03610927308827246

ABSTRACT Multicollinearity or linear dependence among the vectors of regressor variables in a multiple linear regression analysis can have sever effects on the estimation of parameters and on variables selection techniques. This expository paper examines the sources of multicollinearity and discusses some of its harmful affects. Several methods proposed in the literature for detecting multicollinearity and dealing with the associated problems are also presented and discussed.

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