Multicollinearity is a phenomenon that happens during multiple regression analysis. In multiple regression analysis, the dependent variable (Y) is dependent on nos. of independent variables (X1, X2, X3 etc.).
Every independent variable has their own influence on Y separately & the regression equation will reflect their individual effect in a combined manner in the form of Y=a+bX1+cX2+dX3.
These independent variables are not dependent on each other. Therefore, X1, X2, X3 etc will influence only Y & not themselves.
This equation implies that, for a “b” unit change