Invo tells us that his boss wanted him to examine several factors that can affect consumer spending. Prof. Metric replies that this is one of the topics to be discussed this week and that once we finish the chapter, we will be able to:
1. Develop models for multiple linear regression;
2. Discuss specific issues with the OLS estimation method;
3. Explain basic concepts for F-tests and other measurements;
4. Perform data analyses and interpret the results using Excel.
We learn that this chapter will involve two or more explanatory variables.
Econometric Model
So far we have learned to perform regression with only one independent variable. In a real-life situation, we often see more than one factor affecting ...
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