One of the most common—and one of the trickiest—challenges in data analysis is deciding how to include multiple predictors in a model, especially when they’re related to each other.
Let’s say you are interested in studying the relationship between work spillover into personal time as a predictor of job burnout.
You have 5 categorical yes/no variables that indicate whether a particular symptom of work spillover is present (see below).
While you could use each individual variable, you’re not really interested if one in particular is related to the outcome. Perhaps it’s not really each symptom that’s important, but the idea that spillover is happening.