Can somebody explain the answer to A5 quiz question?

Hey Karen,

Thank you for reaching out!

As stated towards the end of the lecture, "multicollinearity is a big problem but is also the easiest to notice". Therefore, we can exclude the last two options in the quiz - "hard to spot but easy to fix" and "hard to spot and hard to fix".

Additionally, the lecturer provides us with a couple of ways to fix multicollinearity, namely:
1. Drop one of the two variables;
2. Transform them into one;
3. Keep them both.
All these fixes are very straightforward to implement. Therefore, it's reasonable to select "easy to spot and easy to fix" as a correct answer to the quiz.

Hope this helps!

Kind regards,
365 Hristina