ch25.collinear

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25 Collinearity ADDING EXPLANATORY VARIABLES............................................................................................25-3  R EVIEW: R EVISITING THE CAPM........................... .......................................................... ............25-3  DEPENDENCE AMONG SEVERAL VARIABLES ...............................................................................25-4  IMPACT OF LARGE COLLINEARITY ...............................................................................................25-7  I  NTERPRETING A SLOPE.................. ................... ................... ................... ................... .................25-10  EFFECTS OF COLLINEARITY ................. ................... ................... ................... ................... ...........25-10  STANDARD ERROR IN MULTIPLE R EGRESSION ................... ................... ................... .................25-11  VARIANCE I  NFLATION FACTOR ................. .................... ................... ................... ................... ....25-13  R EMEDIES FOR COLLINEARITY .................. ................... .................... ................... ................... ....25-14  SEEING HOW A SLOPE CAN CHANGE SIGN ................................................................................25-19  SUMMARY ....................................................................................................................................25-21  PITFALLS......................................................................................................................................25-22  

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