* Testing Polynomial OLS Model for Total Cost Function * * Keywords: * regression, multiple, polynomial, ols, t-test, total cost, graph * * Description: * We illustrate how to estimate a Polynomial OLS Regression Models for Total * Cost Function and do a t-test * * Author(s): * Skif Pankov * * Source: * Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition * McGraw-Hill International Edition, Chapter 8, Example 8.2 (page 248) * 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 * and covariance matrix nl 1 / ncoef = 4 rstat pcov eq tcost = A + B*out + C*(out**2) + D*(out**3) coef A 1 B 1 C -1 D 1 end test C = D end stop