Which of the following techniques can be used to address multicollinearity?
Practice Questions
Q1
Which of the following techniques can be used to address multicollinearity?
Feature selection
Regularization techniques like Lasso
Principal Component Analysis (PCA)
All of the above
Questions & Step-by-Step Solutions
Which of the following techniques can be used to address multicollinearity?
Step 1: Understand what multicollinearity is. It occurs when two or more independent variables in a regression model are highly correlated.
Step 2: Identify the techniques that can help reduce multicollinearity. Common techniques include: removing one of the correlated variables, combining correlated variables into a single variable, using regularization methods like Ridge or Lasso regression, and performing principal component analysis (PCA).
Step 3: Choose the appropriate technique based on your data and model requirements. For example, if two variables are very similar, you might remove one.
Step 4: Apply the chosen technique to your regression model and check if multicollinearity has been reduced.
Step 5: Validate your model to ensure it performs well after addressing multicollinearity.
