* Polynomial OLS Model for Total Cost Function
*
* Keywords:
* regression, multiple, polynomial, ols, total cost, graph
*
* Description:
* We illustrate how to estimate a Polynomial OLS Regression Models for Total
* Cost Function and plot a Graph
*
* Author(s):
* Skif Pankov
*
* Source:
* Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition
* McGraw-Hill International Edition, Chapter 7, Example 7.4 (page 211)
*
sample 1 10
* Reading the datafile and naming the variables
read (data_7.4.shd) out tcost
* Setting up the nonlinear equation: identifying the number of coefficients,
* equation and the starting values, output will also contain residual statistics
nl 1 / ncoef = 4 rstat
eq tcost = A + B*out + C*(out**2) + D*(out**3)
coef A 1 B 1 C -1 D 1
end
graph tcost out
stop