A researcher is running a regression in order to try to determine the factors that influence the seling price of a car. The correlation matrix for the variables he wants to include in his model are shown below (price is the dependent variable). wheebase corheght urbweyat boreroto stroke compressiovate horsepower hwaynpg _prke wheelbase carheight curbweight boreratio stroke compressionatio horsepower highwaympg price 1.0000 0.3894 1.0000 0.7764 0.2936 1.0000 0.4887 0.1711 0.04S 1.0000 0.0559 1.0000 0.1610 0.0553 0.168 0.24 0.2612 0.1514 0.0052 01 1.0000 0.3533 0.1088 0.7307 03717 0.009 0.2043 1.0000 -0.544) 0.1074 0.7975 0.5870 0.049 0.2652 L0000 0.5778 0.1193 0.4353 0.3512 007 0.0680 0.09 1.0000 Which independent variables, if any, may cause a multicollinearity problem? Select all that apply. Select 3 correct answer(s)

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A researcher is running a regression in order to try to determine the factors that
influence the selling price of a car. The correlation matrix for the variables he wants
to include in his model are shown below (price is the dependent variable).
wheelbase cortheght curbweght boreroto strole compressionvate horsepower ghwoympg price
wheelbase
carheight
curbweight
boreratio
stroke
compressionratio
horsepower
highwaympg
1.0000
0.394
1.0000
0.7764
0.2936
1.0000
0.4887
0.1711
0.048S
1.0000
0.1610
0.0553
0.1688
0.0559 1.0000
0.24
0.2612
0.1514
0.0052 0161
1.0000
0.3533
0.1088
0.7507
0.3717 0.009
0.2041
L0000
-0.5441
0.1074
0.7973
0.3870 0.0439
0.2652
L0000
price
0.5778
0.1193
ESEFO
0.3532 0074
0.0680
4.0976 1.0000
Which independent variables, if any, may cause a multicollinearity problem? Select
all that apply.
Select 3 correct answer(s)
boreratio
curbweight
O There is no potential problem with multicollinearity.
O stroke
|carheight
O highwaympg
horsepower
compressionratio
wheelbase
Transcribed Image Text:A researcher is running a regression in order to try to determine the factors that influence the selling price of a car. The correlation matrix for the variables he wants to include in his model are shown below (price is the dependent variable). wheelbase cortheght curbweght boreroto strole compressionvate horsepower ghwoympg price wheelbase carheight curbweight boreratio stroke compressionratio horsepower highwaympg 1.0000 0.394 1.0000 0.7764 0.2936 1.0000 0.4887 0.1711 0.048S 1.0000 0.1610 0.0553 0.1688 0.0559 1.0000 0.24 0.2612 0.1514 0.0052 0161 1.0000 0.3533 0.1088 0.7507 0.3717 0.009 0.2041 L0000 -0.5441 0.1074 0.7973 0.3870 0.0439 0.2652 L0000 price 0.5778 0.1193 ESEFO 0.3532 0074 0.0680 4.0976 1.0000 Which independent variables, if any, may cause a multicollinearity problem? Select all that apply. Select 3 correct answer(s) boreratio curbweight O There is no potential problem with multicollinearity. O stroke |carheight O highwaympg horsepower compressionratio wheelbase
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