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X 2 X 3 Y 101951 112156 122361 132566 142771 152976 MULTICOLLINEARITY 3 2 3 2 X X Y + + = 1 2 2 3 ÷ = X X 1 Suppose that Y = 2 + 3X 2 + X 3 and that X 3 = 2X 2 – 1.There…