Section 18.5 Exercise 13 An analyst wants to build a regression model to predict

Question

Section 18.5 Exercise 13 An analyst wants to build a regression model to predict spending from the following four predictor variables: Past Spending, Income, Net Worth, and Age. The analyst, worried about colinearity, negresses Age against Past Spending, Incone and Net Worth. The output is dispinyod in the accompanying table. What is the VIF for Age? Click the loon to view the regression output VIF-(Round to two decimal places as needed 0 Regression Model Output Response Variable: Age R2 . 87 50% Misted R2-87 44% 2.199 with 908-4-904 degrees of freedom Variable ntercept) 20e+ 01 1499-01134 313 00001 Past Spending 333e-04 1805e-04 1272 0659 noome Networth Coeff 819-04 78320-0849.325 001 492e-05 1.401e-06 17869 0.0001 PrintDone Enter your anewer in the answer box and then cick Check Answer

Explanation / Answer

VIF = 1 / ( 1-Rj ^2) = 1/(1-87.50/100) = 1/(0.125) = 8

Hence, VIf for age is 8 by using the formula

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.