Removal of redundant explanatory variables. The problems of collinearity and multicollinearity in the three examples might be diagnosed using either the VIF or the condition index.Although VIF ...

Regression analysis is a quantitative tool that is easy to use and can provide valuable information on financial ... In our previous example, if the correlation is +1 and the GDP increases ...

For example, a significant correlation between the independent and dependent variable does not necessarily indicate a cause and effect relationship. In some cases, the common linkage may be ...