Why is it desirable to remove insignificant variables from a regression?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introductory Econometrics For Finance

ISBN: 9781108436823

4th Edition

Authors: Chris Brooks

See More Books

Question Posted: Jul 23, 2024 09:00 AM

See More Questions

Below are batting averages of the New York Yankees players who were at bat ve times or more in 2006. (a) Construct a frequency distribution. Explain how you chose the number of bins and the bin...
Name and describe the steps in the supplier selection and evaluation process.
Differentiate the following terms/concepts: a. Prospect and probability distribution b. Risk and uncertainty c. Utility function and expected utility d. Risk aversion, risk seeking, and risk...
Accounting by the acquirer, liquidation of the acquiree LO6, 7 Edward Ltd is a manufacturer of frozen foods in Geelong. The companys products include many forms of vegetables and meats but one...
Chocolat Inc. is a producer of premium chocolate based in Owen Sound. The company has a separate division for each of its two products: dark chocolate and milk chocolate. Chocolat purchases...
Reflect on (or think about) one aspect of your personal finances and discuss how might you apply the TIME VALUE of money concepts to improve that area?
For the same model as above, and given the following results, do a forward and backward predictive failure test: 1981M11995M12 (5.89) 1981M11994M12 1982M11995M12 (5.91) What is your conclusion?
Explain why it is not possible to include an outlier dummy variable in a regression model when you are conducting a Chow test for parameter stability. Will the same problem arise if you were to...
Hybrid recommendation engines utilize two or more filtering strategies to create recommendations. Describe the four different approaches to creating a hybrid system.
Profile Vickers hardness test Penetrating body: Square diamond pyramid :Test force F N ... 981 N (HV 5 ... HV 100) 49 :Measured value Diagonals of the square impression d Hardness value: F 0,189 F...
Determine dy/dr when 3x+4y = 3.
Problem 3. Doping a Semiconductor The following chemical scheme is used to introduce P-atoms as a dopant into a semiconductor - a silicon chip. POCI3 Cl POCI 3 vapor P P SiO2 + P(s) CVD coating Si...
The system shown in the following figure is in static equilibrium and the angle is equal to 34 degrees. Given that the mass1 is 8 kg and the coefficient of static friction between mass1 and the...
Pre-Writing step for a report for your boss on Richard Hackman's statement that using a team to complete a complex project may not be the best approach. Review your classmates' contributions to the...
A mixture of 40 percent by volume methane (CH4), and 60 percent by volume propane (C3H8), is burned completely with theoretical air and leaves the combustion chamber at 100C. The products have a...
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
Current Attempt in Progress An alphabetical list of Pharoah Company adjusted accounts at its fiscal year end, August 3 1 , 2 0 2 4 , follows. All accounts have normal balances. \ table [ [ Accounts...
Explain the concept of hedging in finance. How does hedging reduce risk exposure for businesses?
MIRR Project L costs $45,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 12%. What is the project's MIRR? Round your answer to two decimal places. Do not round your...

Why is it desirable to remove insignificant variables from a regression?

Question:

Step by Step Answer:

Introductory Econometrics For Finance

Students also viewed these Business questions