Multicollinearity| Multicollinearity in E Views| How to Interpret and Detect Multicollinearity| VIF

This video explains the concept of Multicollinearity in a Multiple Regression Model.
The video explains how to detect Multicollinearity in E views and how to remove Multicollinearity from the model.
The video is a step by step tutorial explaining:
1. What is Multicollinearity?
2. Why Multicollinearity is a problem in a Multiple Regression Model?
3. How to detect Multicollinearity?
- High pair wise correlation (Correlation method)
- Variance Inflation Factor Method
4. How to solve Multicollinearity?
- Drop a variable
- Transform some of the variable if possible
- Transform the entire regression model
- Acquire additional data or new sample
- Ridge Regression
- Principal Component Analysis
Link to join telegram channel: t.me/kshekhawat
WATCH THESE VIDEOS TO LEARN HOW TO RUN COINTEGRATION TEST IN E VIEWS-
1. Model 1 - • Cointegration Test in ...
2. Model 2 - • Cointegration Test in ...
WATCH THIS VIDEO TO LEARN HOW TO RUN UNIT ROOT TEST FOR A PANEL DATA-
3. • Unit Root Test in E Vi...
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#multicollinearity #vif #correlation #multipleregressionmodel #eviewstutorial #eviews #varianceinflationfactor

[@amandeepsidhu1113]

आप जैसा अध्यापक देने के लिए मैं ईश्वर का शुक्रगुजार हूँ. अपना ज्ञान का भण्डार हमारे साथ शेयर करने के लिए हम सदा आपके आभारी रहेंगे😌😌

[@komalkanwarshekhawat_]

Equally grateful . Many thanks ❤️❤️

[@AdhyannNamay]

This course is the need of the hour Ma'am! Thank you so much for bringing this to us!

[@komalkanwarshekhawat_]

I know, thanks🤗! All the best 👍

[@bhartisingh5399]

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[@komalkanwarshekhawat_]

❤️❤️

[@ruchivohra]

Thank you so much for making it simple!

[@komalkanwarshekhawat_]

Your welcome 😊

[@AmandeepKaur-ij5zc]

Wonderful mam 😇👍👍👍

[@komalkanwarshekhawat_]

Thanks dear 🤗 Keep learning 👍

[@thientran1534]

thank you so much❤, from VietNam

[@komalkanwarshekhawat_]

Your welcome! Kind regards 🙏 from India

[@mannu8440]

Best work 🙂

[@komalkanwarshekhawat_]

Thanks dear ❤️

[@tronetorres4749]

good keep going

[@komalkanwarshekhawat_]

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[@bhattianamika]

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[@komalkanwarshekhawat_]

Thanks Namu ❤️

[@gursewaksingh2192]

Way of teaching 👌👏👏

[@komalkanwarshekhawat_]

Thanks Gursewak 🤗🤗

[@NATURE__Photography283]

Keep it up mam 👍👍

[@komalkanwarshekhawat_]

Thanks Sukhpreet 🤗

[@amandeepsidhu1113]

Fantabulous ☺️👍👍

[@komalkanwarshekhawat_]

Thanks dear ❤️

[@saynaislamdibasaynaislamdi8875]

Thank you mam take love from Bangladesh your are the best

[@komalkanwarshekhawat_]

Thank you so much dear for your kind appreciation. Good day! 😊

[@chikezieezenna1629]

Please does the VIF diagnoses work for panel data. Because the option is not showing for my dataset. Please advise.

[@meerulkataria6070]

Stupendous ✨✨✨

[@komalkanwarshekhawat_]

Thanks dear ❤️

[@premsinghshekhawat3142]

👏👏👍👍

[@poojagodara3786]

fantastic Ma'am ❤️

[@komalkanwarshekhawat_]

Thanks Pooja ❤️

[@aroraji5635]

Keep it up behan👍

[@komalkanwarshekhawat_]

Thanks bro ❤️

[@willardbhasa8327]

Thank you so much. I am learning indeed. I wish you could also do a detailed video showing how to run a Principal Component Analysis (PCA) in Eviews.

[@komalkanwarshekhawat_]

Your welcome! I shall try to upload a video on PCA too. Thanks.

[@manjinderkaur1786]

nice ji

[@komalkanwarshekhawat_]

Thanks dear ❤️

[@anamikamehta9656]

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[@komalkanwarshekhawat_]

❤️❤️

[@sukhpreetkaur6003]

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[@komalkanwarshekhawat_]

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[@SunitaRani-ny9bn]

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[@komalkanwarshekhawat_]

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[@raufkhan5846]

Ma'am I hope you will reply for my comment.
My study is related to only one country specifically in bond market where bond market is dependent and other macro variables are independent for this can I go for FEM please suggest do reply

[@komalkanwarshekhawat_]

You need to first run the Hausman test.

[@kinzawayne8376]

hi. how do you select the variables? suppose, i click gdp the moment i click LE, the cursor automatically moves away from gdp. i cannot select all my variables using the cursor pad or mouse.
plz help

[@komalkanwarshekhawat_]

Once you select a variable, press control key and select rest of the variables.

[@kinzawayne8376]

Thank you🙂

[@alianoreesa381]

if the variable has VIF > 10, can i just log it instead remove it? bcs i really need to use the variable.

[@komalkanwarshekhawat_]

You can, but do check the log(var). Moreover, as I said in the video if one can't remove the multicollinearity, it is better to ignore as it satisfies BLUE properties. But do justify the same by reviewing literature.

[@mohamedalimohamed2634]

Is there problem if i drop up one IV in multicillonearity test?

[@komalkanwarshekhawat_]

If that variable does not hold significance in your model you can drop it.

[@chandralekhamukherjee6971]

How to do VIF test for panel data in Eviews, ma'am?

[@komalkanwarshekhawat_]

For time series you can find VIF values using View- Residual diagnostic - VIF.
For panel data, there is no such option in EVIEWS.

[@komalkanwarshekhawat_]

For estimating VIF values for panel data, there is no such option in EVIEWS as of now.

[@kinzawayne8376]

Hi. Your lectures are great.
Can i convert my variables as lagged variables instead of converting to log to solve multicollinearity as some variables are already in log form?

[@komalkanwarshekhawat_]

Yes you can 👍

[@kinzawayne8376]

@@komalkanwarshekhawat_ thank you so much for your reply...

[@kinzawayne8376]

I have one more question.
When using GMM, can i use lag only in one of my independent variable..or all independent variables should be lagged?

[@komalkanwarshekhawat_]

@@kinzawayne8376 you can lag one independent variable.

[@MA-yz7ef]

Can I calculate the VIF using more than one dependent variable?

[@komalkanwarshekhawat_]

We check multicollinearity for independent variables.

[@MA-yz7ef]

@@komalkanwarshekhawat_ correct me, if i have two regression models for each dependent variable, a single VIF test on one dependent variable should suffice?

[@komalkanwarshekhawat_]

@@MA-yz7ef VIF test is run to check the multicollinearity among variables. If there are 3/4 independent variables (the number doesn't matter) in your regression model then you are supposed to find out the VIF of each independent variable. If the value of any independent variable's VIF is more than 10 then there is a presence of multicollinearity in the model.

[@MA-yz7ef]

@@komalkanwarshekhawat_ your response is much appreciated, thanks 🙏🏼