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**Multicollinearity **is the phenomenon where the independent variables or the predictors (in a Multiple Linear Regression) are correlated with each other.

**Regression Analysis** is a statistical tool that defines the relationship between two or more variables. It uses data on relevant variables to develop a prediction equation, or model. It generates an equation to describe the statistical relationship between one or more predictors and the response variable and to predict new observations.

An application-oriented question on the topic along with responses can be seen below. The best answer was provided by Mohamed Asif on 8th Aug 2020

Applause for all the respondents - Aritra Das Gupta, Mohamed Asif, Sourabh Nandi, Kanak Roy Chowdhury

Also review the answer provided by Mr Venugopal R, Benchmark Six Sigma's in-house expert.

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## Vishwadeep Khatri 265

Q 286. Why is multicollinearity a problem? How is it detected? What is the right course of action when it is found? Explain with an example.Note for website visitors- Two questions are asked every week on this platform. One on Tuesday and the other on Friday.All questions so far can be seen here - https://www.benchmarksixsigma.com/forum/lean-six-sigma-business-excellence-questions/Please visit the forum home page at https://www.benchmarksixsigma.com/forum/ to respond to the latest question open till the next Tuesday/ Friday evening 5 PM as per Indian Standard Time. Questions launched on Tuesdays are open till Friday and questions launched on Friday are open till Tuesday.The best answer is always shown at the top among responses and the author finds honorable mention in our Business Excellence dictionary at https://www.benchmarksixsigma.com/forum/business-excellence-dictionary-glossary/ along with the related term## Link to post

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