Economics

In running a regression model with three variables, two of the three come back as statistically significant at the 95% level of confidence. The one that doesn't is the intercept - so is my model still valid?

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asked by David
  1. In general, I would say yes, the model is still valid. Your equation would have a problem if the underlying model you are trying to estimate expects a non-zero itercept term.

    However, for most of the model's I estimate, I have no a-priori notion or expectation of what the intercept ought to be. I am much more interested in the slope term.

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