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2. Review the correlation matrix below. Which variables are highly correlated? Quarterly Guarantee Price Age 08 04 Mfg Month KM HP Tax Weight Period Price

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2. Review the correlation matrix below. Which variables are highly correlated? Quarterly Guarantee Price Age 08 04 Mfg Month KM HP Tax Weight Period Price 1.00 Age 08 04 -0.88 1.00 Mfg Month -0.02 -0.12 1.00 KM -0.57 0.51 -0.02 1.00 HP 0.31 -0.16 -0.04 -0.33 1.00 Quarterly Tax 0.22 -0.20 0.03 0.28 -0.30 1.00 Weight 0.58 -0.47 0.00 -0.03 0.09 0.63 1.00 Guarantee Period 0.15 -0.15 0.03 -0.14 0.08 -0.16 -0.01 1.00

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