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Multicollinearity_CBG_110913

Multicollinearity_CBG_110913

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Published by Umashankar Singh

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Published by: Umashankar Singh on Sep 11, 2013
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09/11/2013

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Multicollinearity
 
Abhijeet Kumar Kumar AnshumanManish Kumar Umashankar Singh
 
Agenda
Definition of multicollinearity
Is multicollinearity really a problem?
Nature of multicollinearity
Practical consequences
Detection of multicollinearity
Remedial measures
 
Definition
Meaning of Multicollinearity: It explains presence of aperfect (or) less than perfect linear relationshipamong some or all Xs
Assumption of OLS: X variables are independent.That is, they are not correlated with each other 

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