One of the functions of bank branch offices is to arrange profitable loans to small businesses and individuals. As part of a study of the effectiveness of branch managers, a bank collected data from a sample of branches on current total loan volumes (the dependent variable), total deposits held in accounts opened at that branch, the number of such accounts, the average number of daily transactions, and the number of employees at the branch. Correlations and a scatterplot matrix are shown in the figure.
a. Which independent variable is the best predictor of loan volume?
b. Is there a substantial collinearity problem?
c. Do any points seem extremely influential?

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elattons Vartable Loan volure nillions Loan volune aionsl tepesit volune tiltcas) Nmber of acccunts transactions amployees 0.6610 0-7377 0.7487 0.8463 1.0000 1.0000 0.9369 0.9403 0.8766 0.6810 0.9369 1.0000 0.9755 0.9144 0.7317 0.9403 0.9755 1.0000 0.9299 О. 74 67 0.8766 0.9144 0.3299 10000 0.3463 Munber of account Transaction Eiployees 14 Loan volune 15 Depoait volume 2500 Number of 1500 500 1000 Transactions 600 il 200 12 anployees 10 2 6 10 14 10 15 500 1500 2500 200 600 1000 4 6 9 10 12