1. Multicollinearity. Suppose that you postulate a model explaining final exam score in terms

of class attendance. Thus, the dependent variable is final exam score, and the key explanatory

variable is number of classes attended. To control for student abilities and efforts outside

the classroom, you include among the explanatory variables various measures of the student's

previous year performance. Someone says, "You cannot hope to learn anything from this exercise

because the measures of performance that you included are likely to be highly collinear." What

should your response be?