Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 14 - Section 14.3 - Assess Your Understanding - Applying the Concepts - Page 724: 29a

Answer

There is no reason to be concerned with multicollinearity.

Work Step by Step

In MINITAB, enter the Square Footage values in C1, the Bedrooms values in C2, the Baths values in C3 and the Asking Price values in C4. Select Stat -> Basic Statistics -> Correlation In variables enter C1 C2 C3 C4. You may deselect "Display p-values" Click OK. Since the correlations between Square Footage and Bedrooms, Square Footage and Baths and Bedrooms and Baths are not greater than 0.7 or less than -0.7, there is no evidence that multicollinearity exists.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.