Spreadsheet Modelling Craft at SUU - A Living Textbook
Wednesday, May 25, 2011
In Regression, More RHS Variables Make Each Estimate Less Sharp
The technical term is multicollinearity.
It's a good thing to start a regression big, but you have to remember to prune it down.
If you don't, what you get is larger standard errors for everything which makes them all look insignificant.
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