How to establish the validity and reliability of qualitative research?
The validity and reliability of qualitative research represent the key aspects of the quality of research. When handled meticulously, the reliability and validity parameters help differentiate between good and bad research. They also assure readers that the findings of the study are credible and trustworthy. This aspect becomes particularly vital in case studies involving primary […]
Calculation and relevance of t-statistic in the event study methodology
Statistical measures, particularly the T-statistic, serve as crucial tools in diverse research domains, including economics, finance, and genetics. The T-statistic plays a pivotal role in quantifying the significance of relationships between variables by comparing sample means to data variability. Its application enables researchers to discern whether observed associations are statistically meaningful or a result of […]
How to test for the existence of a unit root in EViews – Stationarity of a Series
How to test for the existence of a unit root in EViews – Stationarity of a Series To test for the existence of a unit root in EViews and the stationarity of a series, you can use the following steps: Unit Root Testing in EViews: EViews provides a variety of unit root testing tools, including […]
How to Tests for Variance Inflation Factor (VIF)
The Variance Inflation Factor (VIF) is used to detect the severity of multicollinearity in ordinary least square (OLS) regression analysis. In EViews, you can calculate the VIF by using the following formula: VIF=1−Ri21Where $R_i^2$ represents the unadjusted coefficient of determination for regressing the ith independent variable on the remaining independent variables. A VIF above […]
How to Interpret Multicollinearity Test Results in Eviews
To interpret multicollinearity test results in EViews, you can analyze the Variance Inflation Factor (VIF) and correlation coefficients. Here’s how to interpret the results: Variance Inflation Factor (VIF): A VIF greater than 10 indicates severe multicollinearity. The VIF measures how much the variance of a coefficient estimate is increased due to multicollinearity. Higher VIF values […]
Understanding Multicollinearity in Linear Regression
What is Multicollinearity? Multicollinearity occurs when two or more independent variables in a regression model are highly correlated with each other. In simpler terms, it’s the presence of strong linear relationships between predictors. This correlation can create problems because it becomes challenging to discern the individual effects of each independent variable on the dependent variable. […]
multicollinearity tests using eviews
To test for multicollinearity in EViews, you can use the Variance Inflation Factor (VIF) and correlation analysis. Here’s how to do it: Variance Inflation Factor (VIF): Open your dataset in EViews. Click on “Quick” > “Group Statistics” > “Correlations.” Select the independent variables you want to check for multicollinearity. Calculate the VIF for each variable. […]
How to perform Heteroscedasticity test in STATA for time series data
Heteroskedastic means “differing variance” which comes from the Greek word “hetero” (‘different’) and “skedasis” (‘dispersion’). It refers to the variance of the error terms in a regression model in an independent variable. If heteroscedasticity is present in the data, the variance differs across the values of the explanatory variables and violates the assumption. This will […]
Assumptions and Diagnostics Tutorial assignment
Assumptions and Diagnostics Tutorial assignment Tutorial 6 (Week 7) Assumptions and Diagnostics Tutorial assignment: What might Ramsey’s RESET test be used for? Ans: The Ramsey’s RESET test is a test to determine the correct functional form. Ramsey’s RESET test is a test of whether the functional form of the regression is appropriate. In other words, […]
How to Write a Thesis Statement
How to Write a Thesis Statement What is a Thesis Statement? Almost all of us—even if we don’t do it consciously—look early in an essay for a one- or two-sentence condensation of the argument or analysis that is to follow. We refer to that condensation as a thesis statement. Why Should Your Essay Contain a […]
