I am aware this may be a fairly simplistic issue but i dont have a wealth of experience with this software yet
I have been running regressions in stata and encountering many problems, upon running my regression with all the desired independent variables my regression model clearly suffered from significant multicolinearity problems as after running the vif command i saw incredibly high figures and ridiculously inflated standard errors. Upon discovering this i reduced the variables in my regression to a point where the vif command no longer gave values above 4, and yet my model still has insanely high standard errors. When running one variable independantly from all the others the standard error is no longer inflated. as well as this when running them all together there is a significant R squared which i am assuming is biased because there is no way that changes in pop growth explain 96% of share price movements. Does anyone here know whats wrong with my regression? is it my data set? what can i do to improve or remove this problem?
Thanks in advance.
I have been running regressions in stata and encountering many problems, upon running my regression with all the desired independent variables my regression model clearly suffered from significant multicolinearity problems as after running the vif command i saw incredibly high figures and ridiculously inflated standard errors. Upon discovering this i reduced the variables in my regression to a point where the vif command no longer gave values above 4, and yet my model still has insanely high standard errors. When running one variable independantly from all the others the standard error is no longer inflated. as well as this when running them all together there is a significant R squared which i am assuming is biased because there is no way that changes in pop growth explain 96% of share price movements. Does anyone here know whats wrong with my regression? is it my data set? what can i do to improve or remove this problem?
Thanks in advance.