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 highway mpg


Collinearity in Regression Model

#artificialintelligence

To make it more clear why collinearity is such a problem, let's take a look at a use case. For the use case, I am going to use the car dataset that you can download easily on Kaggle. Let's imagine we want to predict the price of a car, or price variable in the dataset. To predict it, we will use certain independent variables such as the car's city MPG, highway MPG, horsepower, engine size, stroke, width, peak RPM, and compression ratio. Next, we build a regression model based on these independent variables.