* R. Carter Hill, William E. Griffiths and Guay C. Lim, * Principles of Econometrics, Third Edition, Wiley, 2008. * Chapter 6.7.2 A model of car gasoline consumption SAMPLE 1 392 READ (cars.shd) MPG CYL ENG WGT * Check for high correlations among the regressors that * may suggest collinearity. STAT CYL ENG WGT / PCOR * On the OLS command the ANOVA option reports that F-test statistic * for testing the overall significance of the model. * A high F-test statistic and relatively low t-test statistics * for testing the significance of individual coefficients is * a signal for collinearity. * Estimation results are given on p. 155. OLS MPG CYL ENG WGT / ANOVA * A joint test that the coefficients on CYL and ENG are both zero. TEST TEST CYL=0 TEST ENG=0 END STOP