THE FARRAR-GLAUBAR APPROACH IN TESTING FOR MULTICOLLINEARITY IN ECONOMIC DATA

Authors

  • Akinniyi Alaba Joseph Department of Business Administration & Management, Rufus Giwa Polytechnic, Owo Ondo State, Nigeria
  • Sanni Eneji Ademoh Department of Mathematics & Statistics, Rufus Giwa Polytechnic, Owo Ondo State, Nigeria

DOI:

https://doi.org/10.53555/bma.v3i3.1718

Keywords:

multicollinearity, farrar-glaubar, economic data, Dependent Variables

Abstract

This research aims at determining the presence of Multicollinearity in a function using farrar-glaubar test approach. In most economic data, there is the presence of Multicollinearity but the severity varies. The degree of this multicollinearity may vary from function to function. However, Farrar-Glaubar test is used to detect the presence and severity of Multicollinearity, location of Multicollinearity, and the pattern of Multicollinearity in a function. How to correct the effect of Multicollinearity was also covered this research. After analyses were done on the collected data, we realized that, Multicollinearity is most pronounced in Economic data.

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Published

2018-07-31

How to Cite

Joseph, A. A., & Ademoh, S. E. . (2018). THE FARRAR-GLAUBAR APPROACH IN TESTING FOR MULTICOLLINEARITY IN ECONOMIC DATA. International Journal For Research In Business, Management And Accounting, 3(3), 31–46. https://doi.org/10.53555/bma.v3i3.1718

Issue

Vol. 3 No. 3 (2018): International Journal For Research In Business, Management And Accounting

Section

Articles

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