Question
A regression uses 250 months of returns for the Market and Oil to explain PPGs stock returns. To test for evidence of multicollinearity they regress
A regression uses 250 months of returns for the Market and Oil to explain PPGs stock returns.
To test for evidence of multicollinearity they regress the Market returns on Oil returns. Some of the regression output us an SSR of 4,700 and SEE 1.2. What is its Variance Inflation Factor (VIF)?
Why is the answer not 14.16
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals Of Futures And Options Markets
Authors: John Hull
9th Global Edition
1292422114, 9781292422114
