A Data Science Central Community

Dear all,

I have a stupid question and I hope that you can explain to me in a simple terminology. I have attached an article and on page 13/22 of the adope file and says the following:

*The time series of those five factors were then each regressed on the state variables. An economic variable is significantly related to stock movements if and only if it is significantly related to at least one of the five common stock factors. The null hypothesis for each is the restriction across the equations that the five regression coefficients for that variable( one to each of the factor regressions) are jointly zero. The null hypothesis was rejected for the production growth, the term structure, and the risk premium variables.*

I know that they performed factor analysis to find five significant factors, but when choosing the macro-economic variables, they did the above mentioned statment.

Could anyone of you explain to me in common terms..

Sincerly hoping for an answer...

Tags:

- Attachments:

© 2019 AnalyticBridge.com is a subsidiary and dedicated channel of Data Science Central LLC Powered by

Badges | Report an Issue | Privacy Policy | Terms of Service

**Most Popular Content on DSC**

To not miss this type of content in the future, subscribe to our newsletter.

- Book: Statistics -- New Foundations, Toolbox, and Machine Learning Recipes
- Book: Classification and Regression In a Weekend - With Python
- Book: Applied Stochastic Processes
- Long-range Correlations in Time Series: Modeling, Testing, Case Study
- How to Automatically Determine the Number of Clusters in your Data
- New Machine Learning Cheat Sheet | Old one
- Confidence Intervals Without Pain - With Resampling
- Advanced Machine Learning with Basic Excel
- New Perspectives on Statistical Distributions and Deep Learning
- Fascinating New Results in the Theory of Randomness
- Fast Combinatorial Feature Selection

**Other popular resources**

- Comprehensive Repository of Data Science and ML Resources
- Statistical Concepts Explained in Simple English
- Machine Learning Concepts Explained in One Picture
- 100 Data Science Interview Questions and Answers
- Cheat Sheets | Curated Articles | Search | Jobs | Courses
- Post a Blog | Forum Questions | Books | Salaries | News

**Archives:** 2008-2014 |
2015-2016 |
2017-2019 |
Book 1 |
Book 2 |
More

**Most popular articles**

- Free Book and Resources for DSC Members
- New Perspectives on Statistical Distributions and Deep Learning
- Time series, Growth Modeling and Data Science Wizardy
- Statistical Concepts Explained in Simple English
- Machine Learning Concepts Explained in One Picture
- Comprehensive Repository of Data Science and ML Resources
- Advanced Machine Learning with Basic Excel
- Difference between ML, Data Science, AI, Deep Learning, and Statistics
- Selected Business Analytics, Data Science and ML articles
- How to Automatically Determine the Number of Clusters in your Data
- Fascinating New Results in the Theory of Randomness
- Hire a Data Scientist | Search DSC | Find a Job
- Post a Blog | Forum Questions