Answer Question 2 Letter D Thanks A REGRESSION ANALYSIS HOME

A REGRESSION ANALYSIS HOMEWORK Name Abdulah klan 1. Define the following: a) a (for a hypothesis test) b) R2 in term of variation. 2. Multicollinearity a. What type of multiple regressions (cross-section or time-series) should be checked for Multicollinearity? b. Explain what multicollinearity is. c. Explain how to use the VIF statistics to determine if a regression has Multicollinearity d. In the regression on the opposite side, is a a problem? e. How do you correct for Multicollinearity? Autocorrelation multiple regressions b checked for autocorrelation? a. cross-section or time-series b. Explain what autocorrelation is. c. What is the name of the test for determining if a regression has Autocorrelation? nu t for autocorrelation?

Solution

2.D.

Autocorrelation represents the correlation among data elements present at different time intervals. Thus, it shows similarity and pattern in data available for regression. Thus, Autocorrelation acts as a tool to identify the nature and problem with the data set.

In regression, presence of autocorrelation causes improper data set as well as the proper output of regression cannot be achieved. Thus, it is the data set that needs to be identified for good regression analysis.

Though, autocorrelation poses issues when there is a repetition in error in regression analysis.