Question: Consider fitting the multiple regression model E1y2 = b0 + b1 x1 + b2 x2 + b3 x3 + b4 x4 + b5 x5 A

Consider fitting the multiple regression model E1y2 = b0 + b1 x1 + b2 x2 + b3 x3 + b4 x4 + b5 x5 A matrix of correlations for all pairs of independent variables is given on the right. Do you detect a multicollinearity problem? Explain.

x1 x2 x3 x4 x5 x1 — .94 .87 -.24 .01 x2 — -.04 .22 .46 x3 — .16 .03 x4 — .19 x5 —

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