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A company is interested in the effectiveness of radio advertising X 1 and newspaper advertising X 2 on the overall sales of its products.
A company is interested in the effectiveness of radio advertising X1 and newspaper advertising X2 on the overall sales of its products. The sales of their products and the levels of both types of media expenditure (all in thousands of dollars) for 22 locations were recorded in the following table during a one month test period.
Determine the VIF for each independent variable in the model, with
VIF1 and VIF2 being the VIF for X1 and X2 respectively.
Sales Radio ads Newspaper ads
981 0 40
1119 0 40
880 25 25
626 25 25
917 30 30
979 30 30
927 35 35
1175 35 35
887 40 25
980 40 25
1639 45 45
1570 45 45
1052 50 0
912 50 0
1334 55 25
1325 55 25
1408 60 30
1441 60 30
1528 64 35
1752 66 35
1874 69 40
1718 69 40