Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 23, 2024

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 with AI-Powered 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

Students also viewed these Finance questions

Question

15. Discuss whether people can control what is in the spotlight of consciousness.

Answered: 1 week ago

Question

★★★★★

During its first year of operations, Spring Garden Plans earned revenue of $322,000 on account. Industry experience suggests that bad debts will amount to 2% of revenues. At December 31, 2012,...

Answered: 1 week ago

Question

★★★★★

Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $7,500 at the end of ten years. Using the...

Answered: 1 week ago

Question

★★★★★

The cash account of Flint Co. showed a ledger balance of $16,442.97 on June 30, 2020. The bank statement as of that date showed a balance of $17,430. Upon comparing the statement with the cash...

Answered: 1 week ago

Question

★★★★★

A total of 75 out of 200 old computers were reported as problematic. Therefore, 300 new computers were purchased, of which 6 were reported as problematic. What was the percentage decrease of...

Answered: 1 week ago

Question

★★★★★

Porter Company is analyzing two potential investments. Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4 Project X Project Y $ 60,000 $ 68,000 24,000 4,000 24,000 26,000 24,000 26,000 0...

Answered: 1 week ago

Question

★★★★★

Assignment: Case Study: Siti vs Zana (Question 1) Siti and her supervisor had just returned from a colleague's mother's funeral when she came to a note on her desk. "Siti, Encik Johan took your files...

Answered: 1 week ago

Question

★★★★★

The steel bolt and anchor assembly is used to reinforce the roof of a passageway in an underground coal mine (Figure P5.13). In installation, the bolt is tensioned to 5300 lb. Calculate the stress,...

Answered: 1 week ago

Question

★★★★★

Big Dawg REIT, a national office REIT, reported GAAP net income of $88,706,000 in 2023. It also reported the following items: Net Income: $88,706,000 Real estate depreciation $123,546,000 Gains on...

Answered: 1 week ago

Previous Question Next Question