The National Basketball Association NBA would like to develo

The National Basketball Association? (NBA) would like to develop a multiple regression model that would predict the number of wins for a team during the season. The following table shows the variance inflation factors for the independent variables turnovers per game? (TO), rebounds per game? (REB), assists per game? (ASSISTS), and steals per game? (STEALS).

Which one of the following statements is? true?

A. There is no multicollinearity present in this multiple regression model.

B. To eliminate? multicollinearity, the variable STEALS should be removed from this model.

C. To eliminate? multicollinearity, the variable TO should be removed from this model.

D. To eliminate? multicollinearity, the variables TO and REB should be removed from this model.

Regression Analysis TO and all other X Regression Analysis REB and all other X Regression Statistics Regression Stotistics Multiple R R Square Adjusted R Square Standard Error Observations VIF 0.717469 0.514762 0.32991 0.825262 30 2.060846 Multiple R R Square Adjusted R Square Standard Error Observations VIF 0.719761 0.518057 0.334459 1.349789 30 2.00846 Regression Analysis ASSISTS and all other X Regression Analysis STEALS and all other X Regression Statistics Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations VIF 0.664139 0.441081 0.22816 1.20591 30 1.789169 Multiple R R Square Adjusted R Square-0.05112 Standard Error Observations VIF 0.488714 0.238841 0.798013 30 1.313786

Solution

REB and ASSISTS present multicollinearity. Because one of these can be used to predict the results for the others as correesponding elements have similar relationships.

Therefore, one of these two, REB and ASSISTS, needs to be removed in order eliminate multicollinearity.

Therefore, from the given options, (D) is the correct option. Because on removal of REB, there won\'t by any multicollinearity anymore.