Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Chapter 13: Heteroscedasticity: What happens if the error variance is nonconstant
Multicollinearity: What happens if explanatory variables are correlated?Multicollinearity: A situation where two or more variables can be highly linearly related.Perfect multicollinearity: Perfect collinearity exists when two variables are perfectly linearly related that is R2 = 1Imperfect multicollinearity: Imperfect or near collinearity exists when two variables are approximately linearly related that is R2
Related Documents
