Question

13 the following tabe show the correlation coefficient between housing sold the dependent variable in a regression and the three independent variables: Permit price and employment SOLD PERMIT PRICE FMP SOLD 0779 0.274 -0.295 PERMIT 07291 -047005430 PRICE 0274 0.470 1 0 .906 EMP 0295 -0.543 0.906 1 Choose one of the following answers Multiple Choice The high c on b ons and what is muti n this regression The high correlation between price and employment shows that there is serial correction in this regression Oo oo The high correlation en price and employment shows that there is multicolory in this regression O The negative common between permt and employment show that there is omitted viable in this regression

Answer 1

13(C) .The high correlation between price and employment represent that there is multicollinearity in the regression as the correlation is equal to 1. multicollinearity in regression means the correlation is 1 or -1.