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st: Insignificant coefficient in prediction

From   "Mike Kim" <>
To   <>
Subject   st: Insignificant coefficient in prediction
Date   Wed, 1 Dec 2010 11:54:33 -0600

Hi all,

I have a question about prediction. Linear predictions in Stata (probably in
all software) after any regression seem to use all estimated coefficients
regardless their statistical significance. How can I understand that we use
insignificant coefficients in forecasting?

sysuse auto, clear
reg mpg weight length  // length is not significant
predict mpgh, xb

The predicted values use all coefficients including the coefficient of
'length' even if it is not significant.

Thanks for your time in advance.


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