Question: Continuing with Exercise, find out the partial correlation coefficients for the variables included using Stata or any other software you have. Based on the partial correlations, which variables seem to be highly correlated?
Exercise: For the hours example discussed in the chapter, try to obtain the correlation matrix for the variables included in Table. Eviews, Stata, and several other programs can compute the correlations with comparative ease. Find out which variables are highly correlated.
