Multicollinearity

Institution	University
Course	Mathematics
Year	1st Year
Semester	Unknown
Posted By	Rose Oloo
File Type	pdf
Pages	25 Pages
File Size	390.54 KB
Views	2913
Downloads	87
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Description

A basic assumption is multiple linear regression model is that the rank of the matrix of observations on explanatory variables is the same as the number of explanatory variables. In other words, such a matrix is of full column rank. This, in turn, implies that all the explanatory variables are independent, i.e., there is no linear relationship among the explanatory variables. It is termed that the explanatory variables are orthogonal.

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