Skip to content

What are the limitations of regression analysis?

December 1, 2015
  1. Relationships between variables change over time.
  2. Useful and therefore profitable relationships are eliminated quickly.
  3. Assumptions such as randomness and normal distribution may not fit the observations and relationship being studied.
Advertisements

From → Quant

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: