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Assignment 2
Assignment 2
Assignment 2
Mean(A)=(25+35+21+67+98+27+64)÷7=
337÷7=48.14(Approx.)
Mean(B)=(52+10+5+98+52+36+69)÷7=322÷7=46(Approx.)
Cov(A,B)=[∑(A-μ(A))(B-μ(B))]÷6=(3303)÷6=550.5
σ(A)=√(∑[A-μ(A)]2 ÷ N-1)=√(4984.8572÷6)=
√803.809(Approx.)=28.35(Approx.)
σ(B)=√(∑[B-μ(B)]2 ÷ N-1)=√(6382÷6)=
√1063.66(Approx)=32.61(Approx.)
Cor(A,B)=Cov(A,B)÷(σ(A)*σ(B))=550.5÷(28.35*32.61)=
550.5÷924.4935=0.5954
2. What are the different ways to deal with multi collinearity?
Answer:
There are 2 ways:
A.Ignoring collinearity if prediction of y values is the object of
your study, as it is not a problem in this case.
B.Using a variable selection techniques to remove
redundant variables