Analyze multicollinearity of the independent variables

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Reference no: EM13247512

The dean of a new statistics program at Park University wants to estimate the grade point average in the new program. He thought that high school GPA, the verbal score on the Scholastic Aptitude Test (SAT), and mathematics score on the SAT would be good predictors of statistics students GPA. The data on nine students are:

Student

High School
GPA

SAT 
Verbal

SAT 
Math

Statistics
GPA

1

3.25

480

410

3.21

2

1.80

290

270

1.68

3

2.89

420

410

3.58

4

3.81

500

600

3.92

5

3.13

500

490

3.00

6

2.81

430

460

2.82

7

2.20

320

490

1.65

8

2.14

530

480

2.30

9

2.63

469

440

2.33

Term Paper Template

Purpose Statement and Model

1) In the introductory paragraph, state why the dependent variable has been chosen for analysis. Then make a general statement about the model:

"The dependent variable statistics student's grade point average is determined by variables high school GPA, the SAT verbal score, and the SAT math score."

2) In the second paragraph, identify the primary independent variable and defend why it is important.

"The most important variable in this analysis is ________ because _________." In this paragraph, cite and discuss the two research sources that support the thesis, i.e., the model.

3) Write the general form of the model, with the primary independent variable as X1:

The model is:

Y =

Where

Y: brief definition of Y

X1: brief definition of X1 [etc. for each variable]

Definition of Variables

4) Define and defend all variables, including the dependent variable, in a single paragraph for each variable. Also, state the expectations for each independent variable. These paragraphs should be in numerical order, i.e., dependent variable, X1, then X2, etc.

In each paragraph, the following should be addressed:

Data Description

5) In one paragraph, describe the data and identify the data sources.

Presentation and Interpretation of Results

6) Write the estimated (prediction) equation:

The results are:

=

7) Identify and interpret the adjusted R2 (one paragraph):

2."

2 reveal about the model?

2 is low, how has the choice of independent variables created this result?

8) Identify and interpret the F test (one paragraph):

9) Identify and interpret the t tests for each of the coefficients (one separate paragraph for each variable, in numerical order):

10) Analyze multicollinearity of the independent variables (one paragraph):

11) Other (not required):

Reference no: EM13247512

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