Interpreting Principal Component Regression
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awinterscheidt
- Posts: 1
- Joined: Tue May 12, 2020 4:22 pm
Interpreting Principal Component Regression
I'm looking to resolve multicollinearity by using PCA. So far, I've managed to create the principal components I need, but I'm trying to find a way in views to combine these into interpretable coefficients in a regression on my dependent variable. Ideally, I'd like to use the components to create new coefficients on the original explanatory variables, but I'm not sure how to go about doing this in Eviews. Is this possible and if so, how can I go about it?
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startz
- Non-normality and collinearity are NOT problems!
- Posts: 3798
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Interpreting Principal Component Regression
When you say "resolve multicollinearity," what problem are you trying to solve? What exactly is your goal?
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