What is multicollinearity? In general, how would you know if you had a

What is multicollinearity? In general, how would you know if you had a problem with multicollinearity, and how could you correct it?

What will be an ideal response?

ANSWER

Multicollinearity occurs when the independent variables are correlated. One indication of multicollinearity is that the equation will pass the F-test, but individual variables will not have significant t values. Multicollinearity can sometimes be corrected by omitting some of the correlated variables or by choosing proxy variable.