PROC REG (in SAS) was run on a set of data with n = 40 observations on Y and three independent variables. The collinearity diagnostics gave the following results. (a) What is the rank of X in this...


PROC REG (in SAS) was run on a set of data with n = 40 observations on Y and three independent variables. The collinearity diagnostics gave the following results.


(a) What is the rank of X in this model?


(b) What is the condition number for X? What does that say about the potential for collinearity problems?


(c) Interpret the variance proportions for the fourth principal component. Is there variance inflation from the collinearity? Which regression coefficients are being affected most?


(d) Compute the variance proportions for the third principal component after the fourth has been removed. Considering the condition index and the variance proportions for the third principal component, is there variance inflation from the third component?




May 13, 2022
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