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Write one equation for auxiliary regression for testing multi- collinearity? State the condition for the existence of multi- collinearity?

Write one equation for auxiliary regression for testing multi- collinearity? State the condition for the existence of multi- collinearity?

MATLAB: An Introduction with Applications
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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Note:-  please answer question B. using the blow information and image.

10. Using a sample of 546 observations, a researcher is interested in
finding factors that influence house prices (measured in ten
thousands). The researcher run regression of Hedonic price model
that explain house prices using lot size, bed rooms, bath rooms,
stories all are measured in number of units and dummy variables 
2
whether the house has air-conditioning, drive way, recreation room,
glass show , full basement, garage place and preferred area the results
are shown below. 

b. Write one equation for auxiliary regression for testing multi- collinearity? State the condition for the existence of multi- collinearity?
Transcribed Image Text:b. Write one equation for auxiliary regression for testing multi- collinearity? State the condition for the existence of multi- collinearity?
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