Check for collinearity among predictor variables in multiple regression.
-A sample of 22 firms was selected from the high tech industry (Industry = 1) and the
Financial services sector (Industry = 0) . Data were collected on the following variables:
Turnover rate, job growth, number of employees, and innovative index (higher scores
Indicate a more innovative and creative organizational culture) . A multiple regression
Model is developed to predict Turnover Rate. However, to check for the possibility of
Collinearity, a regression among just the predictor variables was run. Based on the results
Shown below, the Variance Inflation Factor (VIF) for the predictor variable Innovative
Index is The regression equation is
Innovative Index Job Growth -0.00612 Employees
A) 52.5
B) 13.1511
C) 3.63
D) 2.10
E) 1.00
Correct Answer:
Verified
Q3: Check for collinearity among predictor variables
Q4: Adjust for different slopes using interaction terms
Q5: Interpret output from automatic multiple regression
Q6: Adjust for different slopes using interaction
Q7: Apply principles of the multiple regression model
Q8: Use indicator (dummy) variables in multiple
Q9: Use indicator (dummy) variables in multiple regression.
-A
Q10: Use indicator (dummy) variables in multiple
Q12: Apply principles of the multiple regression
Q13: Interpret multiple regression output.
-A sample of
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