* t-test on OLS Model for Food Expenditure in India
*
* Keywords:
* regression, ols, t-test, food, expenditure, India, histogram
*
* Description:
* We illustrate how to do a t-test on an estimated Linear OLS Model for
* Food Expenditure in India and plot a histogram of residuals
*
* Author(s):
* Skif Pankov
*
* Source:
* Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition
* McGraw-Hill International Edition, Chapter 5, Example 5.1 (page 133)
*
sample 1 55
* Read the datafile and name the variables
read (data_3.2.shd) foodexp totalexp
* Running an OLS regression of foodexp on totalexp, specifying to display
* residual statistics and to save the residuals in the variable resids
ols foodexp totalexp / rstat resid = resids
* Constructing a t-test with a null hypothesis that the coefficient of
* totalexp is equal to 0.5
test totalexp = 0.5
* Plotting a histogram of residuals with 15 groups
graph resids / histo groups=15
stop