Consider fitting the multiple regression model E1y2 = b0 + b1 x1 + b2 x2 + b3 x3 + b4 x4 + b5 x5 A matrix of correlations for all pairs of independent variables is given on the right. Do you detect a multicollinearity problem? Explain.

Transcribed Image Text:

X1 X2 X3 X4 X5 .94 .87 -.24 x1 -.04 x2 x3 1 2211 .01 .22 .46 .16 .03 .19 X4 x5