Lenny D. answered • 07/09/19
Tutor
4.8
(563)
Former professor of economics at Tufts University
Collinearity is when some of the explanatory variables in a regression move together. OLS estimates will be unbiased but there will not be much precision. T-statistics will be small and the null hypothsis that coefficients are zero may not be rejected when, in fact they are not zero.
