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Raw Novice - need some advice

Posted: Mon Nov 25, 2019 3:20 pm
by hinchy70
Hi all,

Please see attached image. For university I have had to create a basic model, I have opted for a multiple regression model to view the effects of oil price on Saudi GDP. I have run tests for multi-collinearity and heteroskedasticity and there does not appear to be either present. I am abit concerned that my model is appearing to indicate that a rise in price will have a negative effect on GDP, this would appear to be counter intuitive to the real world.

Can anyone give me any tips on this, it would be greatly appreciated!

Connor

Re: Raw Novice - need some advice

Posted: Tue Nov 26, 2019 9:30 am
by AfonsoRod
There are some things you should do before running your regression, namely the unit root tests. It is not clear if you have done it or not.