Accession Number : AD0681116

Title :   MULTICOLLINEARITY AND THE STATISTICAL POWER OF REGRESSION ANALYSIS,

Corporate Author : RAND CORP SANTA MONICA CALIF

Personal Author(s) : Newhouse,Joseph P.

Report Date : JAN 1969

Pagination or Media Count : 6

Abstract : Multicollinearity is an econometric problem not connected with the error term and for that reason cannot be remedied by suitable manipulation of the data. One question, especially pertinent in light of the frequent use of stepwise regression programming routines, is the effect adding a collinear variable upon other coefficients and tests of significance. The question is particularly important in exploratory studies or studies in which little is known a priori about specification. In this type of study, tests of significance are more important than is usually the case, for they generally play a major role in determining the final specification. (Author)

Descriptors :   (*ECONOMICS, *REGRESSION ANALYSIS), STATISTICAL TESTS, ANALYSIS OF VARIANCE, DECISION THEORY, SAMPLING

Subject Categories : Economics and Cost Analysis
      Statistics and Probability

Distribution Statement : APPROVED FOR PUBLIC RELEASE