« previous next »

Author Question: Three predictor variables are being considered for use in a linear regression model. Given the ... (Read 93 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 24, 2018
Three predictor variables are being considered for use in a linear regression model. Given the correlation matrix below, does it appear that multicollinearity could be a problem?
 
  x1 x2 x3
  x1 1.000
  x2 0.025 1.000
  x3 0.968 0.897 1.000

Question 2

In an outsourcing decision model, the total purchased cost is the product of the unit cost of outsourcing and demand volume.
 
  Indicate whether the statement is true or false
Statistics, Data Analysis, and Decision Modeling ¦ Evans ¦ 5th Edition
Buy Test-Bank


Brenm

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 24, 2018
Answer to Question 1

It appears that multicollinearity could be a problem because x3 is highly correlated with both x1 and x2.

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

The Solar Model The Solar Model
The Milestones of Adjustment Post-Psychosis model outlines a four-phase trajectory from a psychotic ... The Milestones of Adjustment Post-Psychosis model outlines a four-phase trajectory from a psychotic ...
A model for the RuvA-RuvB-Holliday junction structure A model for the RuvA-RuvB-Holliday junction structure
Linear lesions Linear lesions
Discrete random variables- Probability Distribution Function Discrete random variables- Probability Distribution Function
The attenuation model regulating the tryptophan operon The attenuation model regulating the tryptophan operon
Video: Appendicitis Animation

For a complete list of videos, visit our video library