3/24/2009

Chapter 7: Multiple Regression II, cont’d.

• Multicollinearity
• When X’s are completely uncorrelated
• When X’s are perfectly correlated
• When X’s are somewhat correlated
• Effect on Extra SS
• Effect on b_k’s
• Effect on predictions
• Effect on t-tests
• Checking for multicollinearity

Problem Session: Chapter 7

For Thursday: Read Chapter 8.