Design linear regression model with two independent variable


Design/simulate a linear regression model with two independent variables which are correlated. Illustrate the severity of the multicollinearity with Variance Inflation Factor (VIF) analysis. The number of observations should be 100 and make all necessary assumptions in your simulation environment when setting the parameters and choosing the distribution of the error term. Be complete in your analysis and the description of your results. Can use eview or excel.

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Basic Statistics: Design linear regression model with two independent variable
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