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regress VOL STU FAC SAT Source SS df MS Number of obs 60 F (3, 56) Model 83 . 72 116137986 3 38712661.9 Prob >

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regress VOL STU FAC SAT Source SS df MS Number of obs 60 F (3, 56) Model 83 . 72 116137986 3 38712661.9 Prob > F Residual 0 . 0000 25893861 . 8 56 462390 . 389 R-squared 0. 8177 Adj R- squared 0. 8079 Total 142031848 59 2407319. 45 Root MSE 679 . 99 VOL Coef. Std. Err. P> | t | [95% Conf. Interval] STU 03785 0261753 1 . 45 0. 154 . 0145855 . 0902855 FAC 1. 72789 . 4420336 3.91 0. 060 . 8423909 2 . 61339 SAT 1. 831702 . 8197999 2 . 23 0 . 029 189445 3 . 473958 _cons 1842 . 007 810 . 0725 -2.27 0 . 027 - 3464 . 777 219 . 2363 STU=One unit increase in number of students in ith school, will result in an increase of 378.5 books in the school's library, holding all other variables constant, FAC= One unit increase in the number of faculty members in ith school, will result in a 1,727.89 increase in the number of books in the school's library, holding all other variables constant. SAT = one unit increase on the average SAT's of the students at ith school, will result in an 1,831.702 increase in the number of books in the school's library holding all other variables constant.d. (5 points) Compute the High Variance Inflation Factor, VIF (Hint: In Stata "estat vif") and test for multicollinearity.Question 4 (20 points): Suppose you've been hired by the Annual American Research on the Number of Books project to build a model of the number of books in a cross-section of 60 University and college libraries. After reading the literature, you decide to model the number of books as a function of students, number of faculty members, and SAT score of students: VOL, =Bo+ B, STU, +B2 FAC, +B; SAT,+8; where VOL_i = number of books in the ith school's library measured in thousands (1,000) STU_i = number of students in the ith school FAC_i = number of faculty members in the ith school SAT_i = the average SATs of students in the ith school

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