[Statistics] Collinearity in regression
library(knitr) library(ggplot2) library(dplyr) library(tidyr) library(broom) Problem When performing regression analysis, you may encounter two or more predictors that are highly correlated. This is called collinearity or multicollinearity. It can cause problems in estimating the regression coefficients and interpreting the results.
In this post, I will show how collinearity can affect regression analysis, how to detect collinearity, and how to deal with it.
Example: one predictor is a linear function of another predictor Let’s simulate data with the following variables:
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