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2answers
160 views
How does the number of free dimensions of a model affect its required size of sample?
Adding more variables to a model usually increases its accuracy. However, without adequate analysis it could also lead to curve fitting.
Another question (How much data is needed to validate a ...
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0answers
108 views
effectiveness of linear regression in prediction [closed]
How effective is linear regression in predicting asset Price ?
If not, which is the most effective way to predicting an asset price?
Also,price movements are non-linear, why is linear regression ...
4
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1answer
280 views
Why are regressors squared and not ^1.5 or ^2.2 or ^2.5?
When a researcher in economics or finance wants to apply a linear regression model but suspects a non-linear relationship between one of the regressors and the dependent variable, it is typical to ...
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0answers
192 views
Can Hurst exponent be used to characterize nonlinear dependence in time series?
It appears to me that the answer is no, because Hurst exponent measures persistence in terms of autocorrelation, which is a linear measure. So even if a time series of asset returns is driven by ...
