## How to Forecast Volatility of the Conditional Variance in the GARCH Model

To forecast the volatility of the conditional variance using a GARCH model in EViews, follow these steps: Step-by-Step Guide: Load Your Data: Open EViews and load your time series data. Specify the GARCH Model: Go to Quick -> Estimate Equation. In the equation specification box, enter the mean equation (e.g., Y = C(1) + C(2)*X […]

## How to Detect Heteroscedasticity using Eviews

Detecting heteroskedasticity in EViews involves running specific tests and analyzing residual plots. Here are the steps: Step-by-Step Guide: Run Initial OLS Regression: Load your dataset in EViews. Go to Quick -> Estimate Equation. Enter your regression equation (e.g., Y = C(1) + C(2)*X1 + C(3)*X2). Click OK to estimate using Ordinary Least Squares (OLS). Plot […]

## How to correct Heteroscedasticity with Functional Forms of the Model in Eviews

Correcting heteroskedasticity by transforming the functional form of the model in EViews involves the following steps: Step-by-Step Guide: Run Initial OLS Regression: Load your dataset in EViews. Go to Quick -> Estimate Equation. Enter your regression equation (e.g., Y = C(1) + C(2)*X1 + C(3)*X2). Click OK to estimate using Ordinary Least Squares (OLS). Diagnose […]

## How to correct Heteroscedasticity with Weighted (Generalised) Least Squares in Eviews

To correct heteroskedasticity with Weighted (Generalized) Least Squares (WLS/GLS) in EViews, follow these steps: Step-by-Step Guide: Run Initial OLS Regression: Load your dataset in EViews. Go to Quick -> Estimate Equation. Enter your regression equation (e.g., Y = C(1) + C(2)*X1 + C(3)*X2). Click OK to estimate using Ordinary Least Squares (OLS). Diagnose Heteroskedasticity: Check […]

## How to correct Heteroscedasticity with Robust Standard Errors using Eviews

To correct heteroskedasticity using robust standard errors in EViews, follow these expanded steps: Step-by-Step Guide: Run the Initial OLS Regression: Open EViews and load your dataset. Navigate to Quick -> Estimate Equation. Enter the regression equation in the form of Dependent Variable = C(1) + C(2)*Independent Variable + …. Click OK to estimate the equation […]

## Moderation Modelling in Time Series Analysis using EVIEWS

Here are the steps of moderation modelling in time series analysis using EViews, based on a hypothetical scenario: Define Research Objectives and Hypothesis: Clearly state your research question and the moderating effect you’re investigating. For example, you might be studying how marketing affects sales (independent variable) and how economic conditions (moderating variable) influence that relationship. […]

## Difference between Factor Analysis and Path Analysis

Factor analysis and path analysis are both statistical techniques used in the field of multivariate analysis, particularly in the context of structural equation modeling (SEM). While they share some similarities, they serve different purposes and have distinct methodologies. Factor Analysis: Purpose: Factor analysis is primarily used to identify underlying factors or latent variables that explain […]

## Factor Analysis vs Path Analysis – The Difference

Factor analysis and path analysis are both statistical techniques used in the field of multivariate analysis, particularly in the context of structural equation modeling (SEM). While they share some similarities, they serve different purposes and have distinct methodologies. Factor Analysis: Purpose: Factor analysis is primarily used to identify underlying factors or latent variables that explain […]

## Methods of Conducting Mediation Analysis – Using Regression Analysis

How to Testing Mediation Analysis with Regression Analysis Mediation analysis is a hypothesized causal chain in which one variable affects a second variable that, in turn,affects a third variable. The intervening variable, M, is the mediator. It “mediates” the relationship between a predictor, X, and an outcome. Graphically, mediation can be depicted in the following […]

## How to do Mediation Analysis Using Multiple Regression Analysis

How to Testing Mediation Analysis with Regression Analysis Mediation analysis is a hypothesized causal chain in which one variable affects a second variable that, in turn,affects a third variable. The intervening variable, M, is the mediator. It “mediates” the relationship between a predictor, X, and an outcome. Graphically, mediation can be depicted in the following […]