Heteroskedasticity refers to the state of systematic changes in the spread of residuals or the error term of the model. The presence of heteroskedasticity leads to violation of the assumption of the ordinary least square.
Why conduct a multicollinearity test in econometrics?
A multicollinearity test helps to diagnose the presence of multicollinearity in a model. Multicollinearity refers to a state wherein there exists inter-association or inter-relation between two or more independent variables.
How to test normality statistically?
Data scientists strictly prefer to test normality and work on normally distributed data because of its benefits.
How to work with a moderating variable in the regression test with SPSS?
Influencing or control variables are said to be a moderating variable and the effect of these interactions is represented as an interaction effect
How to work with a mediating variable in a regression analysis?
When the linkage between 2 variables exists through a middle variable. This middle variable is referred to as a mediating variable.
How to process the primary dataset for a regression analysis?
Regression analysis signifies the extent of the relationship between the dependent and independent variables.
What is the relevance of significant results in regression analysis?
Regression analysis is the statistical measurement which helps in linking the variables and determining the strength of the relationship between them.
Non linear regression analysis in STATA and its interpretation
In the previous article on Linear Regression using STATA, a simple linear regression model was used to test the hypothesis. However the linear regression will not be effective if the relation between the dependent and independent variable is non linear.