Bookmark and Share

Notice: On April 23, 2014, Statalist moved from an email list to a forum, based at statalist.org.


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

st: Insignificant coefficient in prediction


From   "Mike Kim" <[email protected]>
To   <[email protected]>
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.

Mike.

*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2018 StataCorp LLC   |   Terms of use   |   Privacy   |   Contact us   |   Site index