Info

R-squared 0.995479

Adjusted R-squared 0.992465

S.E. of regression 304.8541

Sum squared resid 836424.1

Log likelihood -109.6174

Durbin-Watson stat 2.559488

Mean dependent var 65317.00

S.D. dependent var 3511.968

Akaike info criterion 14.57718

Schwarz criterion 14.91519

F-statistic 330.2853

Prob(F-statistic) 0.000000

A glance at these results would suggest that we have the collinearity problem, for the R2 value is very high, but quite a few variables are statistically insignificant (Xi, X2, and X5), a classic symptom of multicollinearity. To shed more light on this, we show in Table 10.8 the intercorrelations among the six regressors.

372 PART TWO: RELAXING THE ASSUMPTIONS OF THE CLASSICAL MODEL

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