Hello all,
A question I wanted to ask is that how do you determine if a regression equation exhibits multicollinearity from the standard errors displayed? I'm inclined to say this regression is multicollinear because of the high R^2, but I don't know how to reach this conclusion using the standard error?
The question is seen below from a previous year's past examination paper.
Thank you in advance,
Leon
Detecting multicollinearity from standard error?
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LeonWalras
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Detecting multicollinearity from standard error?
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startz
- Non-normality and collinearity are NOT problems!
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Re: Detecting multicollinearity from standard error?
The intuition is that the regression has very high explanatory power, but none of the individual coefficients is significant.
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