CAS Exam MAS-I Fall 2018, Question 34
Study guide: Exam MAS-I
A least squares regression model is fit to a data set. The resulting predictors and their standard errors are shown below:
| Fitted | Standard Error | |
|---|---|---|
\hat\beta_0 |
1.00 | 0.05 |
\hat\beta_1 |
2.50 | 0.15 |
\hat\beta_2 |
-0.50 | 0.20 |
\hat\beta_3 |
2.00 | 0.80 |
A second model is fit to the same data using only the 3^{\text{rd}} independent variable:
| Fitted | Standard Error | |
|---|---|---|
\hat\beta_0 |
1.25 | 0.08 |
\hat\beta_3 |
2.20 | 0.75 |
Calculate variance inflation factor of \hat\beta_3.
- A) Less than 1.00
- B) At least 1.00, but less than 1.05
- C) At least 1.05, but less than 1.10
- D) At least 1.10, but less than 1.15
- E) At least 1.15
Answer this question and see the worked solution