A researcher wanted to predict academic achievement using Intelligence Test-A (IT-A), Intelligence Test-B (IT-B), Type of school (rural/urban), and conscientiousness as predictors. She used multiple regression analysis. She collected data on 200 students on all variables. The OLS estimator was used. The F = 8.9, p < .01 for the entire model. In individual predictor analysis, IT-B was the insignificant predictor. The suitable test indicated homoscedasticity. The model R² = 0.64 and adjusted R² = 0.59. Both intelligence tests are significantly correlated with the criterion variable and with each other.
Which of the following is the reason for insignificance of IT-B?
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Correct answer: D. Multicolinearity
Explanation
IT-A and IT-B are strongly correlated with each other, so IT-B's unique contribution is masked — multicollinearity.
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