$13:49 Ed View History Bookmarks Window Help O A compass2g.illinois.edu 30% D Inbox (49)-oas... Course: BTW 25... Take Test: Midte... https://compass... Get Homework..... 420Exam1 amAa... how to type squ... Consider the following equation povrate =B1+Burb + B3famsize + Baunemp+ shighschl + Becollege + medinc + where povrate poverty rate, urb-urban population percentage, famsize-family size, unemp unemployment rate, highschl-the percentage of people with high school diploma who are 25 or older, college=the percentage of people with University or higher education who are 25 or older, medine family's medium income. Table 1 presents the regression results: Table 1 Variable Coefficient Std. Error t-Statistic Prob. C 16.81757 8.502563 1.977941 0.0534 urb -0.018735 0.014757 -1.269543 0.2100 famsize 6.091761 1.881073 3.238450 0.0021 unemp -0.011796 0.119457 -0.098749 0.9217 highschl -0.118552 0.068100 -1.740840 0.0877 college 0.171106 0.098165 1.743033 0.0874 medinc -0.535992 0.070354 -7.618501 0.0000 R-squared 0.836184 Akaike info criterion 4.003044 Adjusted R-squared 0.816911 Schwarz criterion 4.251718 Durbin-Watson stat 1.903818 Hannan-Quinn criter. 4.099907 Table 2 urb famsize urb 1.000000 0.350264 famsize 0.350264 1.000000 unemp 0.109609 0.484816 highschl 0.210622 -0.507556 highschl college college -0.358034 -0.299949 medinc -0.084427 -0.034907 unemp medinc 0.109609 0.210622 -0.358034 -0.084427 0.484816 -0.507556 -0.299949 -0.034907 1.000000 -0.108688 -0.108688 1.000000 -0.756632 -0.357567 1.000000 0.847734 -0.714417 -0.280333 0.847734 -0.756632 -0.714417 -0.357567 -0.280333 1.000000 a) Reading Table 1, do you think there exist multicollinearity in the data? If so, why? (10 points) b) To test the possibility of multicollinearity, we have calculated pair-wise correlations, and the results are shown in Table 2. If we were to eliminate one variable from the data, which NOV tv esc 2. ! 72 #3 $ 4 015 % Pa MacBook Pro Q W E R T tab caps lock chil A Send a chat < Z D 96 LL F G