Linear Regression in EViews
1st Video: Estimating a Linear Regression
1st Video: Estimating a Linear Regression
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2nd Video: Multicollinearity
2nd Video: Multicollinearity
Multicollinearity arises when the independent variables in our regression model are highly correlated. In the presence of multicollinearity it is very difficult to fully understand the effect of the explanatory variables on the dependent variable.