* 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