Explain the omitted-variable regression

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Reference no: EM131530102

Question: 1. Define the term "multicollinearity." Explain how you would detect its presence in a multiple regression equation you have estimated. What are the consequences of multicollinearity, and what are the solutions?

2. Explain the following methods.

(a) Ridge regression.

(b) Omitted-variable regression.

Reference no: EM131530102

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