D Question 12 4 pts A study was conducted to determine if a person\'s agreeabili

Question

D Question 12 4 pts A study was conducted to determine if a person's agreeability (whether they are generally an agreeable person or not) affects their income level. It also looked at the person's gender to see if it was a factor as well. The variables are shown below: Income: y annual income in dollars Agree: x1- agreeability level with higher scores indicating a person is more aggregable and lower scores indicating less agreeable Gender: x2- 1 if male, O if female Use the following information to answer the multiple regression questions Printout A: Pairwise Correlations: Income Agree Agree -0.2785 1.0000 Gender 0.8327 -0.0478 Printout B: Best Subset Regression Models for Income Forced Independent Variables: (A)Agree (B)Gender (Cx1x2 il 19 F6 F5 20 F3

Explanation / Answer

here

X1 (agreeability level) and X2 (gender) are the independent or regressor or predictor variables

Y ( income ) is the dependent variable or response variable

we consider multiple regression equation of Y on X1, X2 .

multicollinearity exists in a multiple regression model when two or more independent variables are moderately or highly correlated.

From Printout A, we can see the correlation coefficient between X1 ( agreeability level) and X2 ( gender) is -0.0478 which is very low (only 4 % negatively correlated).

so the variables X1 and X2 are not correlated significantly.

hence,

the data exhibit very little multicollinearity since there is a low correlation between agreement level (X1) and gender (X2)

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