Adequacy of Variable Selection Techniques in Modeling the Determinants of Money Income to Small-Scale Business in Aba, Abia State Nigeria Using Multiple Linear Regression Model

Abstract

This study investigates the adequacy of variable selection techniques in modeling the determinants of money income to small-scale businesses in Aba, Abia State, Nigeria using multiple linear regression model. Variable selection techniques are used to identify the best subset of regressors or explanatory variables to be included in a regression model. The explanatory variables used for this study are inflation rate, exchange rate, consumer price index and private sector credit. This study captured the effects of inflation rate (monthly percentage change in the CPI