Linear Regression with Multiple Regressors (FRM Part 1 2023 - Book 2 - Chapter 8)

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After completing this reading you should be able to:
- Define and interpret omitted variable bias, and describe the methods for addressing this bias.
- Distinguish between single and multiple regression.
- Interpret the slope coefficient in a multiple regression.
- Describe homoskedasticity and heteroskedasticity in a multiple regression.
- Describe the OLS estimator in a multiple regression.
- Calculate and interpret measures of fit in multiple regression.
- Explain the assumptions of the multiple linear regression model.
- Explain the concepts of imperfect and perfect multicollinearity and their implications.
0:00 Introduction
1:03 Learning Objectives
3:55 Addressing Omitted Variable Bias
4:53 Single Vs. Multiple Regression
5:59 Multiple Linear Regression
6:57 OLS Estimators in Multiple Regression
7:47 Assumptions of Multiple Regression
9:22 Multiple Regression Model An Example
10:43 Homoskedasticity vs. Heteroskesdasticity
13:35 Adjusted R2
16:27 Perfect Multicollinearity
18:42 Detecting Multicollinearity
19:27 Consequences of Multicollinearity
20:32 Book 2 - Quantitative Analysis Chapter 8

[@gabelipinski8422]

Hello Dr. Forjan, this video is excellent study material for my econometric final. Thank you!

[@anyavee657]

Thank you

[@xuanfan1571]

Hi Dr. Forjan, this video is very helpful for my econometric course! Thank you so much for creating wonderful concepts.

[@analystprep]

You're welcome!

[@sakar9798]

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[@analystprep]

You're welcome. Good luck on the exam!

[@sammalhotra4839]

Thanks for the video, but shoudn't it be Book 2 Chapter 8 - Quantitative Analysis instead of Foundation of Risk Management? ( referring to opening slide)

[@absarmaster]

Chapter 9 ??? its not available ? if i'm missing it can you please share the link. Thank you so much ..

[@analystprep]

Hi. You can find it here: ruclips.net/video/7MaeKHnLjfk/видео.html