Which of the following is a potential issue when using linear regression?

Practice Questions

Q1
Which of the following is a potential issue when using linear regression?
  1. Multicollinearity among predictors
  2. High variance in the dependent variable
  3. Low sample size
  4. All of the above

Questions & Step-by-Step Solutions

Which of the following is a potential issue when using linear regression?
  • Step 1: Understand what linear regression is. It is a method used to model the relationship between a dependent variable and one or more independent variables.
  • Step 2: Identify potential issues that can arise when using linear regression. These can include problems like multicollinearity, heteroscedasticity, and outliers.
  • Step 3: Recognize that each of these issues can affect the accuracy and reliability of the linear regression model's predictions.
  • Step 4: Conclude that all the listed issues can impact the performance and validity of a linear regression model.
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