To meet the increasing demand for new software products, many systems development experts have adopted a prototyping methodology. The effects of prototyping on the system development life cycle (SDLC) was investigated in the Journal of Computer Information Systems (Spring 1993). A survey of 500 randomly selected corporate-level MIS managers was conducted. Three potential independent variables were (1) importance of prototyping to each phase of the SDLC; (2) degree of support prototyping provides for the SDLC; and (3) degree to which prototyping replaces each phase of the SDLC. The table below gives the pair wise correlations of the three variables in the survey data for one particular phase of the SDLC. Use this information to assess the degree of multicollinearity in the survey data. Would you recommend using all three independent variables in a regression analysis? Explain.

Variable Pairs Correlation Coefficient, r Importance-Replace Importance-Support Replace-Support 2682 6991 -0531