Multicollinearity and heteroskedasticity

Reference no: EM131798737

Healthy living has always been an important goal for any society. In a recent ad campaign for Walt Disney, First Lady Michelle Obama shows parents and children that eating well and exercising can also be fun (USA Today, September 3 0 , 2010). Consider a regression model that conjectures that fruits and vegetables and regular exercising have a positive effect on health and smoking has a negative effect on health. The sample consists of the percentage of these variables observed in various states in the U.S in 2009. A portion of the data is shown below; the complete data set can be found on the text website, labeled Healthy Living. State Healthy (%) Fruits.

2442_regression model that conjectures.png

a. Estimate the model Healthy = β₀ + β₁ Fruits/Vegetables + β₂Exercise + β₃ Smoke + ε.

b. Analyze the data to determine if multicollinearity and heteroskedasticity are present.

Reference no: EM131798737

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