In a multiple regression analysis, the following correlation matrix was computed
ID: 3217719 • Letter: I
Question
In a multiple regression analysis, the following correlation matrix was computed.
What does the correlation matrix suggest about the independent variables?
A. X2 and X4 are correlated as well as X1 and X3; therefore multicollinearity exists.
B. All 4 independent variables are highly correlated with each other, therefore multicollinearity exists.
C. X1 and X2 are correlated.
D. No correlation between the independent variables.
E. X1 and X4.
X1 0.404 X2 0.993 0.362 1 X3 0.345 -0.718 0.375 1 X 0.973 0.357 0.980 0.366 1Explanation / Answer
As we can see, correlation between x2 & x4 is high at 0.98.similarly, correlation between x1 and x3, althought negative is strong at 0.71.other correlations are not as strong.
Hence,answer is a
Hence, answer is
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