Answer
Multicolinearity happens when two explanatory variables have high correlation.
General rule: if the correlation between two explanatory vaiables is less than -0.7 or greater than 0.7, then there is multicolinearity between the two explanatory variables.
It may confuse the researcher. If we have already concluded that there is a linear relation between at least one of the explanatory variables and the response variable, when testing individually if each explanatory variable has a linear relation with the response variable, the multicolinearity may lead us to conclude that no explanatory variable has a linear relation with the response variable. In this case, we have to exclude at least one explanatory variable.
Work Step by Step
Given above.
