I am currently working with attributes that influence the visit rate. However, I have identified that some of these attributes might overlap, resulting in collinearity in the data when applying linear regression. My question is: does the model identify this issue? How does it handle collinearity, and what steps does it take to address it?
Great question. The model does not identify or avoid collinearity in predictor variables. The only variable transformation the model does it to log-transform the response variable (PUD_YR_AVG). Visitation: Recreation and Tourism — InVEST® documentation
In practice, it is very common to want more control over the regression model. So it is often a good idea to take the data from predictor_data.shp and do data exploration on your own, outside of InVEST. And then use some other statistical modeling software, such as R, to fit your own regression model.