Multicollinearity in regression analysis | Easy basic econometrics | Solving multicollinearity

Описание: Multicollinearity in multiple linear regression analysis | Regression analysis | Multiple linear regression analysis | Simple Linear regression analysis | Gauss Markov theorem | Econometrics | Easy basic econometrics.

This video will answer these questions -
1. How to solve multicollinearity?
2. What is multicollinearity


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What is econometrics| What is Simple linear regression analysis.
Econometrics is the branch of economics concerned with the use of mathematical methods (especially statistics) in describing economic systems.
Simple linear regression is a statistical method that allows us to summarize and study relationships between two continuous (quantitative) variables: One variable, denoted x, is regarded as the predictor, explanatory, or independent variable.

What is multicollinearity: When the independent variables in a regression model are correlated then it is a state of multicollinearity.


What is Independent Variable and Dependent Variable?
The other name for independent variables is Predictor(s). The independent variables are called as such because independent variables predict or forecast the values of the dependent variable in the model. The other variable(s) are also considered the dependent variable(s).


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