Non normallity and muticollinearity are not problems!
is this true?
Non normallity and multicollinearity, is this true?
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startz
- Non-normality and collinearity are NOT problems!
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- Joined: Wed Sep 17, 2008 2:25 pm
Re: Non normallity and multicollinearity, is this true?
Multiple regression is built precisely to handle multicollinearity. So long as the classic assumptions hold, estimates are unbiased, standard errors are correct, and the estimates are efficient.
Normality of the errors has nothing to do with bias or efficiency of regression estimates. Normality does matter for the small sample properties of test statistics, but with larger samples the central limit theorem replaces any need for assuming normal errors.
Normality of the errors has nothing to do with bias or efficiency of regression estimates. Normality does matter for the small sample properties of test statistics, but with larger samples the central limit theorem replaces any need for assuming normal errors.
Re: Non normallity and multicollinearity, is this true?
Thank you for answering.
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