A multiple linear regression analysis will be performed on X1, X2, X3 and Y. The following...

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A multiple linear regression analysis will be performed on X1, X2, X3 and Y. The following output shows the correlation between the variables. Correlations X2 X1 1 X3 X1 X2 X3 Y 0.458 0.786 0.615 0.747 0.711 0.654 State a major problem if multiple linear regression analysis is used on the variables. Justify your answer. (3 marks) A multiple linear regression analysis will be performed on X1, X2, X3 and Y. The following output shows the correlation between the variables. Correlations X2 X1 1 X3 X1 X2 X3 Y 0.458 0.786 0.615 0.747 0.711 0.654 State a major problem if multiple linear regression analysis is used on the variables. Justify your answer. (3 marks)

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Here the major problem is multicollinearity which affects the multiple linear regressio... View the full answer