Hello,
I'm running an OLS regression with around 2000 observations and a few variables - most of them are categorical variables.
When the dependent variable is regressed against certain independent variables (e.g. variables A, B, C and D), the model passes the RESET test.
However, when an additional variable is added (e.g. variable E), it fails the test. This additional variable happens to be significant and increase the adjusted R-squared significantly.
Why would this be the case? Could it be because the new variable, although significant, is non-linear?
Thank you,
Ana
Related Posts with Advice regarding Ramsey RESET test result
Help for analysis method in field trialHi My study is about finding the most effective intervention to reduce the risk factors of non-comm…
Label firms with certain consecutive criteriaHi there, This sounds silly but i am stuck here for a while. I have a question regarding labelling f…
Calculate mean of each quantile/decile and get output in excel formatDear, Greetings. I like to calculate mean of each quantile on each date and take the output into a …
getdata command EUROSTATDear all, Do someone have experience with the command getdata? My wish is to import data from EUROS…
Regression tables with esttab - display confidence interval & p-valueHi, I am using esttab to create tables after logistic regression. I present the OR & the 95%CI …
Subscribe to:
Post Comments (Atom)
0 Response to Advice regarding Ramsey RESET test result
Post a Comment