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A) Give two different reasons why you would want to run a regression through the origin. b) give two cases where regression t

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Answer #1

a) The intercept term in linear regression is the value of response variable when the value of predictor is zero.If we run regression through the origin then we are excluding the intercept term.In such a case we have to estimate lesser number of parameters which is an advantage.Further the calculations will be simplified.

b) 2 cases where regression through origin will be reasonable are :

I. Suppose we are regressing weight of n people on their heights. Then the intercept term is meaningless, As if height is zero then weight should also be zero.

ii. Suppose we are regressing the price of flats on their area . Then also if area equals zero then price of flat should also be zero.

c) We need to test for significance of intercept term.

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