If there is severe multicollinearity, which variable would you drop and why
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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If there is severe multicollinearity, which variable would you drop and why? Explain.

Transcribed Image Text:Variance Inflation Factors
Date: 11/27/21 Time: 23:24
Sample: 1973 1998
Included observations: 26
Coefficient
Uncentered
Centered
Variable
Variance
VIF
VIF
3.37E+08
5.764515
NA
X1
0.081335
458.2029
164.6002
X2
2.751412
460.0499
189.9413
X3
11.59506
865.8420
440.3385
X4
4.497165
168.7699
69.97546
X5
2.421020
941.6922
431.8731
X6
1.578440
242.6026
136.9350
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