What are the sources of multicollinearity in regression analysis? Explain methods of detection and correction of multicollinearity. measures of rating obsolescence?.

 Source of multicollinearity:

1.Method of data collection:

It is expected that the data is collected over the whole cross-section of variables. It may happen that the data is collected over a subspace of the explanatory variables where the variables are linearly dependent. For example, sampling is done only over a limited range of explanatory variables in the population.

2. Model and population constraints

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