Question: In a multiple regression y = 0 + 1 x 1 + 2 x 2 + 3 x 3 , if based on the sample

In a multiple regression y =0+1x1+2x2+3x3, if based on the sample data, the correlation coefficient between x1 and x3 is -0.8, is it going to cause multicollinearity? If so, how do we deal with it?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!