When there is high correlation between two independent variables, then that is called the problem of multicollinearity. Why problem? Because you cannot separate out the effects of these independent variables on the dependent variable.

In these videos, we will learn the following :

• What is Multicollinearity?
• An example of Multicollinearity
• Exact Multicollinearity: A situation where regression could not be run. Why?
• What are the consequences of ignoring multicollinearity?
• How to identify Multicollinearity? Continue reading →