For project finance modelling, project analysts need to ensure that their data is not affected...
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Accounting
For project finance modelling, project analysts need to ensure that their data is not affected by the problem of multicollinearity, autocorrelation and heteroskedasticity. Use the following data, and check whether the given data has such problems or not. In particular, you are required to calculate all the possible variance inflation factor (VIF). Calculate DW and BP statistics.
\begin{tabular}{|c|c|c|c|} \hline Y(Dependentvariable) & X1(Independentvariable) & X2(Independentvariable) & X3(Independentvariable) \\ \hline 92 & 15 & 11 & 6 \\ \hline 82 & 20 & 8 & 7 \\ \hline 85 & 14 & 10 & 7 \\ \hline 83 & 13 & 12 & 9 \\ \hline 78 & 27 & 6 & 7 \\ \hline 67 & 20 & 9 & 6 \\ \hline 44 & 12 & 6 & 9 \\ \hline 67 & 15 & 10 & 8 \\ \hline 87 & 15 & 8 & 5 \\ \hline 38 & 17 & 12 & 5 \\ \hline \end{tabular}
