Check the relationships between all pairs of independent variables for potential

Question

Check the relationships between all pairs of independent variables for potential multicollinearity. Note any porblematic pairs and explain how you will address the multicollinearity problem when doing regression analysis, if such problem exists.

(obs-722) wage hours educ exper age mom educ dad educ wage 1.0000 hours! -0.0456 1.0000 educ0.3212 0.0932 1.0000 0.0206-0.1043 -0.4407 1.0000 0.1750 0.0003 0.0387 0.4879 1.0000 exper age mom educ 0.2205 0.0862 0.3718 -0.1744 -0.0113 1.0000 dad educ 0.2412 0.0615 0.4271 -0.2488 -0.0664 0.5765 1.0000

Explanation / Answer

there are many pair of independent variables which look cause of multicollinearity problem

e.g. mom_educ and dad_educ , age and exper, edu and dad_educ

if multicollinearity exist we can do

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