multicollinearity

(redirected from Multicollinear)
Also found in: Dictionary, Thesaurus.

multicollinearity

[‚məl·tē·kō‚lin·ē′ar·əd·ē]
(statistics)
A concept in regression analysis describing the situation where, because of the high degree of correlation between two or more independent variables, it is not possible to separate accurately the effect of each individual independent variable upon the dependent variable.
References in periodicals archive ?
If a firm's G Index is constant over the sample period, then the G Index and the firm dummy will be perfectly multicollinear.
However, multicollinearity checks reveal that in some of the subsamples, the volatility measure and the other housing demand explanatory variables are highly multicollinear, whereas this is not the case for the full sample data.
Because longitudinal univariate regressions, such as these, are confounded by multicollinear effects in which time is a factor, their interpretation may be misleading.
For both of these subgroups, the "sole Maori" variable had statistically significant explanatory power even when the full set of potentially multicollinear controls was included (see Chapple 2000a, Tables 8 and 9).
Even though the in-sample MAPE and MAD in Exhibit 7 exceeds the in-sample MAPE and MAD of the multicollinear model in Exhibit 5, the out-of-sample (forecasts) MAPE and MAD in Exhibit 7 are well below the out-of-sample (forecasts) MAPE and MAD in Exhibit 5 by differences of 5.
In this research, it was decided to use three related, but not multicollinear, definitions of effectiveness as dependent variables: average annual increase in employment (EMPGRO), average annual increase in revenue (REVGRO) and average annual increase in profit (PROFGRO).
9 indicates a potentially harmful multicollinear relationship, causing the least squares estimator to have inflated variances and resulting in imprecise and unreliable estimates (Goldberger, 1991, p.
it] because (a) average fiscal pressure is multicollinear with the growth of government consumption and (b) public investments, the other branch of public spending, are already included in [IPK.
It should be noted, however that, to the extent that high capital-labour ratios act as barriers to the entry of new firms into the industry, concentration ratios and capital intensity may be multicollinear.