* The Multiple Regression Model * Reference: Chapters 7 and 8 of * R. Carter Hill, William E. Griffiths and George G. Judge, * Undergraduate Econometrics, Second Edition, Wiley. SAMPLE 1 52 * Weekly observations on Revenue, Price and Advertising READ (TAB7-1.shd) TR P A * The OLS command reports: * - estimated parameters (Section 7.2.2, p.151-153) * - the estimate of the error variance (SIGMA**2) (Section 7.2.3) * - the PCOV option reports the estimated variances and covariances * (Section 7.3.1) * - t-test statistics for testing the significance of a single * coefficient (Section 7.5) * - R-square and adjusted R-square (Section 7.6) * - the ANOVA option reports the analysis of variance table and the * F-test for overall significance (Section 8.2, p. 174-176). * - the COEF= option saves the estimated coefficients in the * variable specified. The coefficients are then used later * for a prediction exercise. OLS TR P A / COEF=BETA PCOV ANOVA * Interval estimation (Section 7.4, pp.157-159). CONFID P A * Prediction (Equation R7.4, p.153). SAMPLE 1 1 GENR P1=2 GENR A1=10 GENR TR1 = (BETA:1)*P1 + (BETA:2)*A1 + BETA:3 PRINT TR1 STOP