I am attempting to perform a regression on what has caused the reduction in CD album sales, and need a little assistance. I have 28 data points from the USA 1983-2010, and am using gdp per capita, internet use, digital album sales, and digital single sales as independent variables.
Is it as simple as this? [Eviews]
I can see there that I have a very high R squared, I have heard this could point to some multicollinearity? Is this true?
Also, I predict that internet use not only reduces cd album sales, but increases digital music sales. Could this hint at why the coefficient and t-stat is much higher for hi-speed-inet use, because the regression software has worked this out for me?
Also, in this case what does the negative coefficient represent? I don’t understand how zero income, internet use, etc could cause MINUS cd sales!
Thanks for any help or ideas, really appreciated!