Use the data set below to answer the following questions. Complete pa.pdf
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The document discusses calculating the variance inflation factor (VIF) for two independent variables to assess multicollinearity. It concludes that the VIF is 0.8, indicating no sufficient evidence of multicollinearity since VIF is less than 4. The calculations confirm that R-squared values are the same irrespective of the order of variables.
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Use the data set below to answer the following questions. Complete pa.pdf
- 1. Use the data set below to answer the following questions. Complete parts a through d Calculate the variance inflation factor (VIF) for each of the independent variables. Indicate if multicollinearity exists between the two independent variables. (Round to one decimal place as needed.) There sufficient evidence of multicollinearty between the two independent variables. Solution R square for (x1,x2) = R square for (x2,x1) Therefore, VIF = 1/(1+R^2) = 0.8 Since VIF < 4. There is not sufficient evidence of multicollinerarity between independent variables.