Estimate the model again without non significant variables.compare the models : corrected coefficient of determination and information criteria the higher corrected coefficient of determination the better model is.
Econometric mode Gretl – a statistical package 1. Write the variable y after the estimation 2. Check the statistical significance of every variable X_i. 3. Check the coefficient of determination – percentage of the explained variation 4. remove of non significant variables 5. Estimate the model again without non significant variables 6. compare the models […]