Q: Why should we always run a correlational analysis before fitting an econometric model?

1 Answer to this question

Before constructing a model, it is important to identify which variables are relevant and which are random disturbances. Performing a correlational analysis helps identify the relevant variables and their impact. The models themselves may involve correlation coefficients.

For further help, you may also wish to learn about our related service here: Editage Statistical Review

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Hope that helps. All the best for your study!