Regression: Insignificant Intercept
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I ran a regression and the intercept is statistically insignificant (the p-value is greater than 0.05). I tried to look in some textbooks as to how to handle this problem but I am still unsure. One textbook I looked at 'Basic Econometrics'by Gujarati and Porter says that if the intercept is insignificant then we have a regression through the origin and that if we remove the intercept, in this case, the model will be more precise. On the other hand, 'Introductory Econometrics'by Chris Brooks says that even if the intercept is insignificant, we should not remove it from the model.
Which one of these textbooks is correct? Should I leave the insignificant intercept in the model or run a regression through the origin?
regression linear-model intercept
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user198848
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up vote
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I ran a regression and the intercept is statistically insignificant (the p-value is greater than 0.05). I tried to look in some textbooks as to how to handle this problem but I am still unsure. One textbook I looked at 'Basic Econometrics'by Gujarati and Porter says that if the intercept is insignificant then we have a regression through the origin and that if we remove the intercept, in this case, the model will be more precise. On the other hand, 'Introductory Econometrics'by Chris Brooks says that even if the intercept is insignificant, we should not remove it from the model.
Which one of these textbooks is correct? Should I leave the insignificant intercept in the model or run a regression through the origin?
regression linear-model intercept
asked 3 hours ago
user198848
83
add a comment |
up vote
1
down vote
favorite
up vote
1
down vote
favorite
I ran a regression and the intercept is statistically insignificant (the p-value is greater than 0.05). I tried to look in some textbooks as to how to handle this problem but I am still unsure. One textbook I looked at 'Basic Econometrics'by Gujarati and Porter says that if the intercept is insignificant then we have a regression through the origin and that if we remove the intercept, in this case, the model will be more precise. On the other hand, 'Introductory Econometrics'by Chris Brooks says that even if the intercept is insignificant, we should not remove it from the model.
Which one of these textbooks is correct? Should I leave the insignificant intercept in the model or run a regression through the origin?
regression linear-model intercept
asked 3 hours ago
user198848
83
I ran a regression and the intercept is statistically insignificant (the p-value is greater than 0.05). I tried to look in some textbooks as to how to handle this problem but I am still unsure. One textbook I looked at 'Basic Econometrics'by Gujarati and Porter says that if the intercept is insignificant then we have a regression through the origin and that if we remove the intercept, in this case, the model will be more precise. On the other hand, 'Introductory Econometrics'by Chris Brooks says that even if the intercept is insignificant, we should not remove it from the model.
Which one of these textbooks is correct? Should I leave the insignificant intercept in the model or run a regression through the origin?
regression linear-model intercept
regression linear-model intercept
asked 3 hours ago
user198848
83
asked 3 hours ago
user198848
83
asked 3 hours ago
user198848
83
asked 3 hours ago
user198848
83
asked 3 hours ago
user198848
83
83
add a comment |
add a comment |
1 Answer
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If the regression line pass through point (0,0) physically, then excluded intercept, otherwise keep the intercept even it is not significant. One example of the regression line pass through point (0,0) physically is: response variable (Y) is distance the can run, and the covariate (X) is volume of gasoline consumed by the car. When X = 0, Y = 0.
answered 1 hour ago
user158565
4,1641316
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1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
2
down vote
If the regression line pass through point (0,0) physically, then excluded intercept, otherwise keep the intercept even it is not significant. One example of the regression line pass through point (0,0) physically is: response variable (Y) is distance the can run, and the covariate (X) is volume of gasoline consumed by the car. When X = 0, Y = 0.
answered 1 hour ago
user158565
4,1641316
add a comment |
up vote
2
down vote
If the regression line pass through point (0,0) physically, then excluded intercept, otherwise keep the intercept even it is not significant. One example of the regression line pass through point (0,0) physically is: response variable (Y) is distance the can run, and the covariate (X) is volume of gasoline consumed by the car. When X = 0, Y = 0.
answered 1 hour ago
user158565
4,1641316
add a comment |
up vote
2
down vote
up vote
2
down vote
If the regression line pass through point (0,0) physically, then excluded intercept, otherwise keep the intercept even it is not significant. One example of the regression line pass through point (0,0) physically is: response variable (Y) is distance the can run, and the covariate (X) is volume of gasoline consumed by the car. When X = 0, Y = 0.
answered 1 hour ago
user158565
4,1641316
If the regression line pass through point (0,0) physically, then excluded intercept, otherwise keep the intercept even it is not significant. One example of the regression line pass through point (0,0) physically is: response variable (Y) is distance the can run, and the covariate (X) is volume of gasoline consumed by the car. When X = 0, Y = 0.
answered 1 hour ago
user158565
4,1641316
answered 1 hour ago
user158565
4,1641316
answered 1 hour ago
user158565
4,1641316
answered 1 hour ago
user158565
4,1641316
4,1641316
add a comment |
add a comment |
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