Hello,
I have a problem with multicolinearity in a multiple regression analysis. Two of my predictors and the outcome are correlated at .8, VIF's are around 4-6, Tolerances at .2 - .3 and Condition index at 23. My dataset has 72 cases, 5 continuous predictors (excluding the controls, with them 13 variables, dummy coded categorical controls - age, tenure etc.)
I am running SPSS 17. I understand that in order to avoid the multicolinearity ridge regression can be used, with the CATREG command. However, I do not know what options should I choose (I have read discretization option multiply, but besides this?), how to get the p values for the predictor's weights, and most importantly how to interpret the results.
I appreciate if anyone can suggest a way to handle this or to find more information about the procedure (I've tried googling and this much I came with).
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