Multiple Regression Analysis Econometrics Lab Dataset and Regression

Multiple Regression Analysis Econometrics Lab

Dataset and Regression Exercise 1 �Find and download the Dataset �Check to see if your data can be run through a regression �Run a regression with multiple independent variables

Simple vs Multiple Regression

Stata Output A) B) F) D) E) G) H) I) C) J) K)

How are they Different? (k) � A) SSE: = ∑(y − ˆy)2 � B) SSR: ∑ (yˆ − y)2 � C) TSS: = SSE + SSR � D) MSR: = SSR/df � E) MSE: SSE/df � F) Root MSE: √MSE “Average distance of the estimator from the mean” � G) R 2: = SSR/TSS � H) Adj R 2 = 1 - ((1 – R 2)((n - 1) /( n - k - 1)) � I) Root MSE: √MSE “Average distance of the estimator from the mean” � J) STD. Error = √[ ∑(SSE/n-k-1)/[(xi-xbar)2] � K) T test statistics (t): =Coefficient/Std Error

Stata Output A) B) F) D) E) G) H) I) C) J) K)

Exam Prep

Regression by Hand Step by Step � 1) Find x and y � 2) Find variance of x using x � 3) Find the Covariance of x and y using x and y � 4) find b 1 using the variance and covariance � 5)Find b 0 using y, b 1 and x � 6) Find the Regression line using b 1, b 0

Questions? Stop by the lab or email with questions