* The Simple Linear Regression Model * Reference: Chapters 3 to 6 of * R. Carter Hill, William E. Griffiths and George G. Judge, * Undergraduate Econometrics, Second Edition, Wiley. * * Table 3.1 contains data on food expenditure (Y) and weekly income (X) * from a random sample of 40 households. SAMPLE 1 40 READ (TAB3-1.shd) FOOD INCOME / SKIPLINES=1 * The OLS command reports: * - OLS parameter estimates (Equation 3.3.10, p.55) * - the income elasticity evaluated at the sample means * (Equation 3.3.14, p.57). * - estimated standard errors (Section 4.5.2, p.81-84). * The LIST option gives the predicted values and residuals. * (see Table 4.2, page 82) * The right portion of SHAZAM output from the LIST option shows * a crude residual plot. * The PCOV option reports the estimated variances and covariances * of the least squares estimators ((Section 4.5.2, p.81-84). * The OLS command also reports: * - t-test statistics for "tests of significance" and a p-value for * a 2-sided test (Section 5.2.8, p.105-107). * - the R-square (Section 6.1.1, p.124-125). * The ANOVA option gives the analysis of variance table. * (Section 6.1.1, p.124-125). OLS FOOD INCOME / LIST PCOV ANOVA * Calculate a 95% confidence interval estimate for the slope parameter * (Section 5.1.4, p.97-98). CONFID INCOME * Test the null hypothesis H0: B2 = 0.10 * (Section 5.2.5 & 5.2.7, p.102-105). * The TEST command reports a test statistic and p-value for a 2-sided test. TEST INCOME=0.10 STOP