Enter the coefficient of determination into the calculator to determine the Monitor Coefficient.
Monitor Coefficient Formula
The following formula is used to calculate the Monitor Coefficient.
MC = 1 / (1 - R^2)
Variables:
- MC is the Monitor Coefficient
- R^2 is the coefficient of determination (decimal)
To calculate the Monitor Coefficient, subtract the coefficient of determination from 1. Then, divide 1 by the result. The Monitor Coefficient is a measure of the degree of multicollinearity in a regression model. A high Monitor Coefficient indicates a high degree of multicollinearity, which can distort the reliability of the model’s estimates and predictions.
What is a Monitor Coefficient?
A Monitor Coefficient is a statistical value used in econometrics and regression analysis to assess the impact of multicollinearity, which is a situation where two or more variables in a multiple regression model are highly correlated. If the monitor coefficient is high, it indicates a high degree of multicollinearity, which can distort the reliability of the regression model’s estimates and predictions. This coefficient helps researchers and analysts to ensure the accuracy and reliability of their models.
