the data series is sufficiently large... about more than 30 0bservations then you can ignore

the violation of normality assumption coz by central limit theorem a long series will

converge to normality.... for auto-correlation and heteroskedasticity we can try first some

transformation in the variables.... however, if that does not work then use Newey-West

test for HC and HAC... This is readily available in R and Stata... Not sure about Eviews....

hope this helps..

Moritz J. Sch commented> shouldn't we rather state: "we fail to reject the null" instead of

"accept the null"?

Sayed Hossain commented> Fail to reject null sounds good

Moritz J. Sch commented> This has somehow become the standard phrase in empirical

work. My professor never got tired of mentioning, that "accepting" is a horrible

misconception, because the null must not necessarily be true, especially with a p-Value of

Muhammad Anees commented> In research and as per the Williams, Elements of Style,

double negatives sounds good :)

George Savva commented> You should not use any statistical test for normality of

residuals. Whether they are 'significantly' non-normal is not important for the validity of the

regression.

Hossain Academy Note

Ade Kutu

Afolabi Luqman

Abdullah Sonnet

Asad Zaman

Atiq Rehman

Burcu Özcan

Ghumro Niaz Hussain

Muhammad Anees

Mohammad Zhafran

Muzammil Bhatti

Monis Syed

Mine PD

Moulana N. Cholovik

Muili Adebayo Hamid

Nicat Gasim

Najid Iqbal

Nasiru Inuwa

Noman Arshed

Rapelanoro Nady

Seye Olasehinde-Williams

Suborno Aditya

Sayed Hossain

Shishir Sakya

Sheikh Muzammil Naseer

Tella Oluwatoba Ibrahim

Younes Azzouz

Meo School of Research

Shishir Shakya

Noman Arshed

Univariate Models |

Multivariate Models |