Linked Questions

1 vote
0 answers
2k views

Multicollinearity and centering [duplicate]

I read nearly all topics about collinearity but still have some questions... I know: multicollinearity is a problem because if two predictors measure approximately the same it is nearly impossible to ...
ResearchMimi's user avatar
0 votes
0 answers
21 views

Interaction term and main effect multicollinearity [duplicate]

If I have the predictors $X$, $Y$, and $XY$ to fit a linear regression model. Won't I be increasing the standard error of the regression coefficients? This is because $XY$ is collinear with $X$ and $...
Harry Stuart's user avatar
404 votes
7 answers
407k views

When conducting multiple regression, when should you center your predictor variables & when should you standardize them?

In some literature, I have read that a regression with multiple explanatory variables, if in different units, needed to be standardized. (Standardizing consists in subtracting the mean and dividing ...
mathieu_r's user avatar
  • 4,451
10 votes
4 answers
14k views

Can you add polynomial terms to multiple linear regression?

I am a little confused about when you should or shouldn't add polynomial terms to a multiple linear regression model. I know polynomials are used to capture the curvature in the data, but it always ...
Amy K's user avatar
  • 131
4 votes
2 answers
9k views

standardising non normally distributed predictors for regression

In regression, standardization is recommended in ordered to assess the relative importance of predictors. However there seems to be an assumption of normality? How would the interpretation work for ...
Anton's user avatar
  • 409
5 votes
1 answer
16k views

Centering data in multiple regression

In a multiple regression analysis (with 4 continuous predictors and 2 categorical factors), we mean centered the data (for each continuous variable) due to issues of multicollinearity when the ...
Wynn's user avatar
  • 283
4 votes
1 answer
225 views

Does mean centering work only for normally distributed variables?

In econometric analysis in some cases, such as models with interaction terms, multicollinearity between independent variables may exist. In such cases, some researchers suggest "mean-centering&...
Sane's user avatar
  • 153
0 votes
1 answer
806 views

Variance Inflation Factors are incredibly high for t1 - can I use this model

I am building a model to explain performance in one time period to another. I have my variables and then I have an interaction effect for those variables in the second time period. Using this data,...
James Oliver's user avatar
2 votes
0 answers
926 views

What are the pros and cons of standardizing variable in presence of an interaction? [duplicate]

I put this question because while reading the benefits of standardizing explanatory variables or not, I read good but contrasting opinions about standardizing when there are interaction in the model. ...
user31351's user avatar
1 vote
2 answers
196 views

Standardize one predictor variable or all predictor variables to solve multi-collinearity

I was using a fixed-effects panel model with interaction effects when I realized that the VIF values are too high for some variables. I was advised to standardize the predictor variables to mitigate ...
user130252's user avatar