Rerun the regression requesting variance inflation factors (VIFs) for your predictors. Consumer Prices, Capacity Utilization, Money Supply, and Unemployment (n = 41, k = 4) Year ChgCPI CapUtil ChgM1 ChgM2 Unem 1966 2.9 91.1 2.5 4.6 3.8 1967 3.1 87.2 6.6 9.3 3.8 1968 4.2 87.1 7.7 8.0 3.6 1969 5.5 86.6 3.3 3.7 3.5 1970 5.7 79.4 5.1 6.6 4.9 1971 4.4 77.9 6.5 13.4 5.9 1972 3.2 83.3 9.2 13.0 5.6 1973 6.2 87.6 5.5 6.6 4.9 1974 11.0 84.4 4.3 5.4 5.6 1975 9.1 73.5 4.7 12.6 8.5 1976 5.8 78.2 6.7 13.4 7.7 1977 6.5 82.4 8.1 10.3 7.1 1978 7.6 84.3 8.0 7.5 6.1 1979 11.3 84.2 6.9 7.9 5.8 1980 13.5 78.7 7.0 8.6 7.1 1981 10.3 77.0 6.9 9.7 7.6 1982 6.2 71.0 8.7 8.8 9.7 1983 3.2 73.5 9.8 11.3 9.6 1984 4.3 79.4 5.8 8.6 7.5 1985 3.6 78.3 12.4 8.0 7.2 1986 1.9 78.4 16.9 9.5 7.0 1987 3.6 80.9 3.5 3.6 6.2 1988 4.1 83.9 4.9 5.8 5.5 1989 4.8 83.1 0.8 5.5 5.3 1990 5.4 81.6 4.0 3.8 5.6 1991 4.2 78.3 8.8 3.1 6.8 1992 3.0 79.4 14.3 1.6 7.5 1993 3.0 80.3 10.2 1.5 6.9 1994 2.6 82.8 1.8 0.4 6.1 1995 2.8 83.1 -2.0 4.1 5.6 1996 3.0 81.9 -4.1 4.8 5.4 1997 2.3 83.0 -0.7 5.7 4.9 1998 1.6 81.7 2.1 8.6 4.5 1999 2.2 80.8 2.6 6.0 4.2 2000 3.4 80.1 -3.1 6.0 4.0 2001 2.8 73.9 8.7 10.4 4.7 2002 1.6 73.0 3.2 6.3 5.8 2003 2.3 74.2 7.1 5.0 6.0 2004 2.7 76.6 5.3 5.8 5.5 2005 3.4 78.8 -0.2 4.0 5.1 2006 3.2 80.4 -0.5 5.3 4.6   (a) Fill in the values for the table below. (Round your answers to 3 decimal places.)    Variables VIF Intercept   CapUtil   ChgM1   ChgM2   Unem       (b) Data set D has no potential multicollinearity problem. Is the statement true?    multiple choice 1 Yes No   (c) Data set D has    multiple choice 2 potential multicollinearity problems because VIF > 10 no potential multicollinearity problems because VIF < 10

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Rerun the regression requesting variance inflation factors (VIFs) for your predictors.

Consumer Prices, Capacity Utilization, Money Supply, and Unemployment (n = 41, k = 4)

Year ChgCPI CapUtil ChgM1 ChgM2 Unem
1966 2.9 91.1 2.5 4.6 3.8
1967 3.1 87.2 6.6 9.3 3.8
1968 4.2 87.1 7.7 8.0 3.6
1969 5.5 86.6 3.3 3.7 3.5
1970 5.7 79.4 5.1 6.6 4.9
1971 4.4 77.9 6.5 13.4 5.9
1972 3.2 83.3 9.2 13.0 5.6
1973 6.2 87.6 5.5 6.6 4.9
1974 11.0 84.4 4.3 5.4 5.6
1975 9.1 73.5 4.7 12.6 8.5
1976 5.8 78.2 6.7 13.4 7.7
1977 6.5 82.4 8.1 10.3 7.1
1978 7.6 84.3 8.0 7.5 6.1
1979 11.3 84.2 6.9 7.9 5.8
1980 13.5 78.7 7.0 8.6 7.1
1981 10.3 77.0 6.9 9.7 7.6
1982 6.2 71.0 8.7 8.8 9.7
1983 3.2 73.5 9.8 11.3 9.6
1984 4.3 79.4 5.8 8.6 7.5
1985 3.6 78.3 12.4 8.0 7.2
1986 1.9 78.4 16.9 9.5 7.0
1987 3.6 80.9 3.5 3.6 6.2
1988 4.1 83.9 4.9 5.8 5.5
1989 4.8 83.1 0.8 5.5 5.3
1990 5.4 81.6 4.0 3.8 5.6
1991 4.2 78.3 8.8 3.1 6.8
1992 3.0 79.4 14.3 1.6 7.5
1993 3.0 80.3 10.2 1.5 6.9
1994 2.6 82.8 1.8 0.4 6.1
1995 2.8 83.1 -2.0 4.1 5.6
1996 3.0 81.9 -4.1 4.8 5.4
1997 2.3 83.0 -0.7 5.7 4.9
1998 1.6 81.7 2.1 8.6 4.5
1999 2.2 80.8 2.6 6.0 4.2
2000 3.4 80.1 -3.1 6.0 4.0
2001 2.8 73.9 8.7 10.4 4.7
2002 1.6 73.0 3.2 6.3 5.8
2003 2.3 74.2 7.1 5.0 6.0
2004 2.7 76.6 5.3 5.8 5.5
2005 3.4 78.8 -0.2 4.0 5.1
2006 3.2 80.4 -0.5 5.3 4.6

 

(a) Fill in the values for the table below. (Round your answers to 3 decimal places.)
  

Variables VIF
Intercept  
CapUtil  
ChgM1  
ChgM2  
Unem  
 

 
(b) Data set D has no potential multicollinearity problem. Is the statement true?
  
multiple choice 1

  • Yes
  • No


 
(c) Data set D has
  
multiple choice 2

  • potential multicollinearity problems because VIF > 10
  • no potential multicollinearity problems because VIF < 10
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