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The researcher is concerned with multicollinearity problem. She produced the correlation table below. Note that LSFA = log(SFLA) and L SP = log(selling price).
The researcher is concerned with multicollinearity problem. She produced the correlation table below. Note that LSFA = log(SFLA) and L SP = log(selling price). AGE BATHS BEDS LSFA VACANT STORIES -0.61 -0.39 -0.33 -0.20 BATHS -061 0.75 0.70 BEDS -089 0.67 0.51 0.42 LSFA -083 0.75 0.67 0.70 0.51 -0.16 0.39 VACANT -0.16 STORIES 0.42 0.39 -cos Q14_ Suppose a correlation between tvo variables of magnitude higher than 0.70 is considered high. Which two Independent variables are likely to suffer from this problem? [2]
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