The manager of a commuter rail transportation system was recently asked by her governing board to determine the factors that have a significant impact on the demand for rides in the large city served by the transportation network. The system manager has collected data on variables that might be related to the number of weekly riders on the city’s rail system. The file P10_20.xlsx contains these data.
a. Estimate a multiple regression model using all of the available explanatory variables. Perform a test of significance for each of the model’s regression coefficients. Are the signs of the estimated coefficients consistent with your expectations?
b. Is there evidence of multicollinearity in this model?
Explain why or why not. If multicollinearity is present, explain what you would do to remedy this problem.