RESEARCH METHODOLOGY

Detailed explanation-1: -A stepwise variable selection procedure in which variables are sequentially entered into the model. The first variable considered for entry into the equation is the one with the largest positive or negative correlation with the dependent variable.

Detailed explanation-2: -Stepwise regression is the step-by-step iterative construction of a regression model that involves the selection of independent variables to be used in a final model. It involves adding or removing potential explanatory variables in succession and testing for statistical significance after each iteration.

Detailed explanation-3: -Overall, stepwise regression is better than best subsets regression using the lowest Mallows’ Cp by less than 3%. Best subsets regression using the highest adjusted R-squared approach is the clear loser here. However, there is a big warning to reveal. Stepwise regression does not usually pick the correct model!