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    3. A regression equation uses three independent variables to predict Y. The coefficient of determination for regressing X_1 on variables X_2 and X_3 is .95. The coefficient of determination for regressing X_2 on variables X_1 and X_3 is .85.
    a. What is the VIF for X_1?
    b. What is the VIF for X_2?
    c. Would you say multicollinearity may present a problem for this regression equation?

    4. Data are collected for the variables Y, X_1, and X_2. A computer printout of the correlation matrix is:

    See attached

    a. Which independent variable, X_1 or X_2, would be selected first in a forward regression procedure?
    b. Which independent variable, X_1 or X_2, would be a better predictor of Y? Why?

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    Solution Preview

    3. A regression equation uses three independent variables to predict Y. The coefficient of determination for regressing X1 on variables X2 and X3 is .95. The coefficient of determination for regressing X2 on variables X1 and X3 is .85.
    a. What is the VIF for X1?
    b. What is the VIF for ...

    Solution Summary

    The regression equations for independent variables are examined.

    $2.19

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