Identify trend by checking the significance

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Question 1. Incorporate seasonal dummies and trends into your model. Identify if you have seasonality, trend by checking their significance? Is that consistent with your previous findings?

Question 2. Check all your explanatory variables check for multicollinearity again (scatter plots, VIF, correlations). If you have a sign switch, correct the situation by throwing one (and if necessary more) of the variables out of the model. Consider R-squared or adj R-squared when making the decision. Your model should ONLY have variables with a correct sign that have the highest combined adj-R-squared.

Reference no: EM132855820

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