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Can you please provide MATLAB code for this question and explanation for Part C.

ID: 3303527 • Letter: C

Question

Can you please provide MATLAB code for this question and explanation for Part C.

3. In the context of a multiple regression Y- + Ax, +-. + AX. k-i,-, K. where R is the coefficient of determination from the regression X1-0-51X2 + ri (a) Derive R as a function of VIF. (b) Using the MATLAB subplot function, plot (1) VIF vs. R2 and (2) R2 vs. VIF. (c) Describe the relationship between these two metrics, and explain why VIF 10 is considered "problem atic". Does the rule of thumb that VIF = 10 is problematic imply that any VIF

Explanation / Answer

We obtain Rk^2 from multiple linear regression and then calculate VIFk as 1/(1-Rk^2)

To plot : subplot(2,1,0.1)

plot(vif,R^2)

VIF=10 is considered problematic because with high VIF, R^2 value is high and hence there is th problem of multicollinearity. The independent variables are highly correlated amongst themselves, leading to redundant factors. It may not be considered VIF<10 is acceptable and VIF is considered high beyond value 5. Generally VIF<5 is said to be acceptable