--

Hi Aarti!
Multicollinearity is NOT a problem in this case. Do not care about multicollinearity between one variable and a second variable which is a deterministic non-linear function of the first one (e.g X and X²). Multicollinearity has to be checked when you want to estimate the independent effect of two variables which happen to be correlated by chance! X and X² are not correlated by chance.

--

--

Rukshan Pramoditha
Rukshan Pramoditha

Written by Rukshan Pramoditha

3,000,000+ Views | BSc in Stats (University of Colombo, Sri Lanka) | Top 50 Data Science, AI/ML Technical Writer on Medium

No responses yet