All in the blurb below… [Some outputs could appear to be a bit messy and difficult to read and if that is the case on the interface of your choice,…

# Category: Econometrics & Statistics

Seasonality is omnipresent in real life and hence is likely to show up in your data especially when trying to model consumer behavior. But it’s not a certainty and hence…

We have a theory – we know that as interest rates go up, mortgage affordability declines and with that, home values follow. That’s what we expect, an inverse or a…

Blurb below… [Some outputs could appear to be a bit messy and difficult to read and if that is the case on the interface of your choice, follow the link…

An attempt at explaining the difference between a linear relationship and a linear model when trying to connect the Y (dependent variable) with the Xes (independent variables) in a linear…

So we looked at what multicollinearity is and the issues that might cause but we got lucky there since the variables in that dataset were mostly continuous. But what happens when…

Heteroskedasticity (say what…) is all about changing variance and it often occurs in datasets where there is a large disparity between the largest and the smallest values of a dependent…

So you fit a model to your data and you start using the estimated parameters (coefficients) right away in making predictions. But how do you know whether the estimated coefficients are…