Three predictor variables are being considered for use in a linear regression model. Given the correlation matrix above, does it appear that multicollinearity could be a problem?
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Explain.
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Question

Three predictor variables are being considered for use in a linear regression model.  Given the correlation matrix above, does it appear that multicollinearity could be a problem?
______________
Explain.
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Quizplus · Accepted Answer

The Answer is Yes; It appears that multicollinearity could be a problem because x[3] is highly correlated with both x[1] and x[2].

Three Predictor Variables Are Being Considered for Use in a Linear