👉 In statistics, multicollinearity refers to a situation where two or more independent variables are highly correlated with each other. This means that as the values of one variable increase or decrease, the value of another variable is also likely to increase or decrease significantly. Multicollinearity can occur in various forms, such as multiple linear regression analysis, principal component analysis (PCA), and correlation analysis. In multicollinearity, there are many variables that contain highly correlated data points with each other,