Question

A survey is divided into three parts:

Part 1 includes socioeconomic status (SES) information; parent’s education, employment status (currently employed yes or no), income level, and receiving free or reduced lunch at school.

In part 2, the questions are regarding the environment at home, time spent watching (playing video games) TV at home, having a TV in their rooms, computer available to do assignments at home, Internet access at home, etc.

part 3, includes questions related to the safety of the neighborhood environment: some examples include if the students walk to school, how safe they feel while walking to and from school, do you feel safe at school? Are there a lot of fights at school? etc.

The purpose of you collecting these data is to create a model that can help to predict academic achievement in high school students using some of these variables.

1. Question: How could you measure for multicollinearity? Explain how you could address the multicollinearity

Answer 1

Multicollinearity means near linear dependent of explanatory variables which affects our Ordinary Least Square Estimates. So you should ensure that the choosen variables are free from Multicollinearity. Multicollinearity can be diagnosed using methods like Variance Inflation Factor (VIF).

If Multicollinearity is daignosed then next our aim is to remove that variable immediately from the predicted model or you can conduct a Ridge Regression.

More details about Multicollinearity and its detection is given as handwritten images..

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