When independent variables in the regression are highly correlated with each other, it is called multicollinearity. For this question I want you to discuss multicollinearity and answer the following questions:

a. What does it mean to say that independent variables are highly correlated?

b. When is multicollinearity not a problem (explain your answer, don't just give me the term for it).

c. When can multicollinearity be a problem (again, explain your answer, don't just give me the term for it).

d. What are the warning signs that multicollinearity might be present or situations where you might suspect that multicollinearity could be present?

e. How can you correct multicollinearity?