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 - Vocabulary and Skill Building - Page 720: 13a

Answer

There is no evidence that multicollinearity may be a problem.

Work Step by Step

In MINITAB, enter the $x_1$ values in C1, the $x_2$ values in C2, the $x_3$ values in C3, the $x_4$ values in C4 and the $y$ values in C5. Select Stat -> Basic Statistics -> Correlation In variables enter C1 C2 C3 C4 C5. You may deselect "Display p-values" Click OK. Since any of the correlations between $x_1$ and $x_2$, $x_1$ and $x_3$, $x_1$ and $x_4$, $x_2$ and $x_3$, $x_2$ and $x_4$, $x_3$ and $x_4$ (that is, the correlations between the explanatory variables) are not greater than 0.7 or less than -0.7, there is no evidence that multicollinearity exists.
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