Question: Consider the following correlation matrix: Describe how you would find out from the correlation matrix whether (a) There is perfect collinearity, (b) There is less

Consider the following correlation matrix:

Xk X2 X2 r2k r23 r3k R= X3 r32 X LTE2 rk3


Describe how you would find out from the correlation matrix whether 

(a) There is perfect collinearity, 

(b) There is less than perfect collinearity, 

(c) The X€™s are uncorrelated.

You may use |R| to answer these questions, where |R| denotes the determinant of R.

Xk X2 X2 r2k r23 r3k R= X3 r32 X LTE2 rk3

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