SECTION ONE: DETERMINING IF THE FULL MODEL SUFFERS FROM MULTICOLLINEARITY, FINDING THE ROBUST MODEL AND DO E5 THE ROBUST MODEL SUFFERS FROM HFI'ERDS KEDAFI'ICITY An economist specializing in health ca re economics wants to measure the impact on economic growth based on consumers\" lifestyles. There has been substantial work done on the growing numbers of people becoming overweight and obese. Studies have shown that the rate of people becoming overweight and obese is growing at an alarming rate. One study conducted by the NIH [National Institute of Health} indicated that by 2030, an estimated 38% of the world's adult population will be overweight and an additional 20% of that population will be declared obese. Furthermore, that same study indicated that in the 0.5., the most ominous predictions based on trends produced by the NIH show that over 85% of the adult population will be oveniveight or obese by 2030. The study indicated that some ofthe reasons the U.5., as well as the rest of the world, are experiencing such a phenomenon are poor dieting, lack of exercise, and smoking. The economist will be looking at tacto rs that will impact people who are obese. The economist will investigate the body mass index. What is the body mass index? The body mass index is a gure that is derived from the mass {or the weight of the patient) and the patient's height. It is defined as taking the patient's body mass divided it by the square of the patient's height. The body mass index, or b mi. [in short), is measured in kilograms per meter squared. In trying to assess factors impacting a patient's body mass index, which will be used as a proxy for determining if a person is obese. The economist will interview many people and some of the questions posed to the interviewees are: [a] Does the patient smoke? {b} Does the patient exercise? (c) How many calories, estimated, does the consumer consume daily? Below is the data: BMI Smoke Exercise Calories [Caloric intake, in thousa nds) 34.8 ye s 2.1 30.1 no 2 . 450 34.5 3.100 32.3 2.860 2.550 2.900 2.060 3.550 Age Indicator Normal Weight Overweight Obese Children international >-2 to $2 SD WHO 2006. 0-60 months BMI Z or WH Z At risk of overweight >2 to $3 SD >3 SD >1 to $2 SD WHO 2007. 5-19 years BMI Z >-2 to $1 SD >1 to $2 SD >2 SD 2-18 years Growth curve for BMI = 30 BMI at age 18 BMI = 25 USA. 2-19 years BMI percentile 25th to (139). These categories, if not the exact terminology, of adult weight status have been adopted by other major health organizations, including the US National Heart, Lung, and Blood Institute and National Institute of Diabetes and Digestive and Kidney Diseases (135). Predixhas an unofficial cut point of 23-