I estimate a multiple linear regression model for portfolio using market size and value and adding as usual a constant ( to make sure that E(errors)=0 as per the GM assumptions request ). Then I wish to identify monthly effects so I generate a dummy for each month of the year , from January to December included . EViews will Select one: a. send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1 . As a consequence the OLS estimator is not identified b. send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the costant (c) multiplies the regressor 1 and the sum of all the dummy variable is at any point in time equal to 1 . As a consequence the model is not identified and no estimator can estimate the betas c. send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the costant (c) multiplies the regressor 1 and the sum of all the dummy variable is at any point in time equal to 1 . As a consequence the OLS estimator is inconsistent d. send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1 . As a consquence theOLS estimator suffers of bias e. send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1 . As a consquence the model is not identified and cannot be estimated
I estimate a multiple linear regression model for portfolio using market size and value and adding as usual a constant ( to make sure that E(errors)=0 as per the GM assumptions request ). Then I wish to identify monthly effects so I generate a dummy for each month of the year , from January to December included . EViews will
send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1 . As a consequence the OLS estimator is not identified
send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the costant (c) multiplies the regressor 1 and the sum of all the dummy variable is at any point in time equal to 1 . As a consequence the model is not identified and no estimator can estimate the betas
send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the costant (c) multiplies the regressor 1 and the sum of all the dummy variable is at any point in time equal to 1 . As a consequence the OLS estimator is inconsistent
send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1 . As a consquence theOLS estimator suffers of bias
send out an error message saying : near singular matrix . This is happening because I fell into the dummy variable trap because the sum of all the dummy variables is at any point in time equal to 1 . As a consquence the model is not identified and cannot be estimated
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