Refer to Problem 2.16. Suppose you regress ASP on GPA, GMAT, acceptance rate (%), tuition, and recruiter rating. A priori, would you face the multicollinearity problem? If so, how would you resolve it? Show all the necessary regression results.
Problem 2.16
Table 2-12, found on the textbook's Web site, gives data on average starting pay (ASP), grade point average (GPA) scores (on a scale of 1 to 4), GMAT scores, annual tuition, percent of graduates employed at graduation, recruiter assessment score (5.0 highest), and percent of applicants accepted in the graduate business school for 47 well-regarded business schools in the United States for the year 2007-2008.