In Problem 14.17, you were asked to use stepwise regression to predict amount spent by value, durability, and service. Study the stepwise results, including the regression coefficients, to determine whether there may be a problem with multicollinearity. Construct a correlation matrix of the three variables to aid you in this task.

Data from problem 14.17

A marketing analyst carries out a survey to assess whether the amount of money a customer spends in a clothing store depends on how the customer feels about the value he receives, the perceived durability of the material, or the service provided by the retail outlet. Customers are asked to rate value, durability, and service on a 10-point scale (the higher the better). Given below is a part of the data so collected. Use stepwise regression to assess if these variables influence the amount spent and, if so, determine the relationship.

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Amount Spent ($) 37 49 38 50 29 60 21 77 46 16 Value 3 4 4 4 3 6 3 5 6 3 Durability 4 3 3 3 2 3 2 6 4 2 Service N N N N 2 4 5 475 3