SCENARIO 15-5
What are the factors that determine the acceleration time (in sec. )from 0 to 60 miles per hour of a car? Data on the following variables for 171 different vehicle models were collected:
Accel Time: Acceleration time in sec.
Cargo Vol: Cargo volume in cu.ft.
HP: Horsepower
MPG: Miles per gallon
SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan are both 0
Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan are both 0
The coefficient of multiple determination ( R 2 j )for the regression model using each of the 5 variables X j as the dependent variable and all other X variables as independent variables are,respectively,
0.7461,0.5676,0.6764,0.8582,0.6632.
-Referring to Scenario 15-5,there is reason to suspect collinearity between some pairs of predictors based on the values of the variance inflationary factor.

Question

SCENARIO 15-5
What are the factors that determine the acceleration time (in sec. )from 0 to 60 miles per hour of a car? Data on the following variables for 171 different vehicle models were collected:
Accel Time: Acceleration time in sec.
Cargo Vol: Cargo volume in cu.ft.
HP: Horsepower 
MPG: Miles per gallon
SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan are both 0 
Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan are both 0
The coefficient of multiple determination ( R 2 j )for the regression model using each of the 5 variables X j as the dependent variable and all other X variables as independent variables are,respectively,
0.7461,0.5676,0.6764,0.8582,0.6632.
-Referring to Scenario 15-5,there is reason to suspect collinearity between some pairs of predictors based on the values of the variance inflationary factor.

Quizplus · Accepted Answer

The variance inflationary factor (VIF) is a measure of collinearity, and if the VIF values are high, it indicates strong collinearity between the predictors. However, the scenario does not provide information on the VIF values, so we cannot conclude whether there is collinearity or not. Therefore, the answer is true, as there is reason to suspect collinearity based on the coefficient of multiple determination (R-Squared) values alone.

SCENARIO 15-5 What Are the Factors That Determine the Acceleration Time (In