Content
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd">
<!-- NewPage -->
<html lang="en">
<!-- Generated by statdoc (version v0.9.1-beta.snapshot) on 2015-02-23 10:45:56 -->
<head>
<meta charset="utf-8"/>
<link rel="stylesheet" type="text/css" href="../stylesheet.css" title="Style">
<title>efn508</title>
<meta name="date" content="2015-02-23">
<script src="../d3.min.js"></script>
<script src="../statdoc.js"></script>
</head>
<body>
<!-- ========= START OF TOP NAVBAR ========= -->
<div class="topNav"><a name="navbar_top">
<!-- -->
</a><a href="#skip-navbar_top" title="Skip navigation links"></a><a name="navbar_top_firstrow">
<!-- -->
</a>
<ul class="navList" title="Navigation">
<li ><a href="../overview/overview-summary.html" target="classFrame">Overview</a></li>
<li ><a href="../variables/variables-summary.html" target="classFrame">Variables</a></li>
<li class="navBarCell1Rev"><a href="../files/files-summary.html" target="classFrame">Files</a></li>
<li ><a href="../tokens/tokens-summary.html" target="classFrame">Tokens</a></li>
<!-- <li><a href="../flows/flow-summary.html" target="classFrame">Flows</a></li> -->
<li ><a href="../overview/help-doc.html" target="classFrame">Help</a></li>
<!-- <li class="navBarCell1Rev">Active</li> -->
</ul>
</div>
<div class="subNav">
<ul class="navList">
<li>
<a href="../files/_StataProgramFiles_Section 1.do.html" title="/StataProgramFiles/Section 1.do">Prev</a>
</li>
<li>
<a href="../files/_StataProgramFiles_Section 3.do.html" title="/StataProgramFiles/Section 3.do">Next</a>
</li>
</ul>
<ul class="navList">
<li><a href="../compare.html?files/_StataProgramFiles_Section 2.do.html" target="_top">Compare</a></li>
<li><a href="../index.html?files/_StataProgramFiles_Section 2.do.html" target="_top">Frames</a></li>
<li><a href="../files/_StataProgramFiles_Section 2.do.html" target="_top">No Frames</a></li>
</ul>
<a name="skip-navbar_top">
<!-- -->
</a></div>
<!-- ========= END OF TOP NAVBAR ========= --><!-- ======== START OF FILE DATA ======== -->
<div class="header">
<div class="subTitle">efn508</div>
<h2 title="Statdoc File Section 2.do" class="title">File Section 2.do</h2>
</div>
<div class="contentContainer">
<ul class="inheritance">
<li>
<table border="0" style="border-collapse: collapse;table-layout: auto;width: auto;">
<colgroup>
<col span="1" width="200px">
<col width="10px" style="text-align:center;">
<col width="200px">
<col width="10px" style="text-align:center;">
<col span="1" width="200px">
</colgroup>
<tr class="inheritance">
<td style="border: none;"></td>
<td style="text-align:center;background: #ffd6ae;">→</td>
<td style="background: #ffd6ae;">
<span style="background: #ffd6ae;"><b>/StataProgramFiles/Section 2.do</b></span>
</td>
<td style="text-align:center;background: #ffd6ae;">↘</td>
</tr>
</table>
</li>
</ul>
</li>
</ul>
<div class="description">
<ul class="blockList">
<li class="blockList">
<hr>
<br>
<pre><span class="strong">/StataProgramFiles/Section 2.do <a href="../../StataProgramFiles/Section 2.do">open</a></span>
file:script:do</pre>
</li>
</ul>
</div>
<ul class="blockList">
<li class="blockList">
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">date</td>
<td class="colLast">Tue Dec 09 16:59:18 EST 2014</td>
</tr>
</tbody>
</table>
</li>
</ul>
<ul class="blockList">
<li class="blockList">
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Variable Summary table, listing datasets and labels">
<caption><span><a name="variables"><!-- --></a>All commands</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" style="width:30px" scope="col">#</th>
<th class="colLast" width="100%" scope="col">content
<!-- <span style="float: right;"> <a title="Raw Source" onclick="toggle('rawframe');setIframeHeight('rawframe');">raw</a> -->
</th>
<!--
<td style="display:none;" id="rawframe" rowspan="338" height="100%">
<iframe scrolling="yes" width="600px" height="100%" src="../files/_StataProgramFiles_Section 2.do.html#content" name="statdocSubFrame_raw" title="Raw File" style="height: 100%; width: 600px; overflow-x:scroll; overflow-y:scroll; -ms-overflow-x:scroll; -ms-overflow-y:scroll;"></iframe>
</td>
-->
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="1" title="comment"><!-- -->
1</a> <a onclick='toggle("cmd_385985664");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:${ind}em">
<span class="cmdcomment">********************************************************************************
// SECTION 2 REGRESSION 1
********************************************************************************</span>
<div id="cmd_385985664" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">********************************************************************************
// SECTION 2 REGRESSION 1
********************************************************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">********************************************************************************
// SECTION 2 REGRESSION 1
********************************************************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="6" title="comment"><!-- -->
6</a> <a onclick='toggle("cmd_-817587724");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:${ind}em">
<span class="cmdcomment">// Extended Exercise 1 {Savings in Singapore}</span>
<div id="cmd_-817587724" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Extended Exercise 1 {Savings in Singapore}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Extended Exercise 1 {Savings in Singapore}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="10" title="webuse"><!-- -->
10</a> <a onclick='toggle("cmd_-1641958317");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters"><a href="../tokens/s.html#set">set</a> <a href="../tokens/h.html#http">http</a>://<a href="../tokens/w.html#www">www</a>.<a href="../tokens/n.html#ncer">ncer</a>.<a href="../tokens/e.html#edu">edu</a>.<a href="../tokens/a.html#au">au</a>/<a href="../tokens/s.html#stata">stata</a>-<a href="../tokens/r.html#resources">resources</a>/<a href="../tokens/d.html#data">data</a>/<a href="../tokens/h.html#Honours">Honours</a>/</span>
<div id="cmd_-1641958317" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse set http://www.ncer.edu.au/stata-resources/data/Honours/</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#set">set</a> <a href="../tokens/h.html#http">http</a>://<a href="../tokens/w.html#www">www</a>.<a href="../tokens/n.html#ncer">ncer</a>.<a href="../tokens/e.html#edu">edu</a>.<a href="../tokens/a.html#au">au</a>/<a href="../tokens/s.html#stata">stata</a>-<a href="../tokens/r.html#resources">resources</a>/<a href="../tokens/d.html#data">data</a>/<a href="../tokens/h.html#Honours">Honours</a>/</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="11" title="webuse"><!-- -->
11</a> <a onclick='toggle("cmd_1165507774");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 2.do.html#11">savings</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"><a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_1165507774" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">webuse "savings.dta",clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"><a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 2.do.html#11">savings</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="13" title="g"><!-- -->
13</a> <a onclick='toggle("cmd_-1836442477");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dates">dates</a> = <a href="../tokens/t.html#tq">tq(</a><a href="../files/_StataProgramFiles_Section 2.do.html#13">1975q1</a>)+<a href="../tokens/_.html#_n">_n</a>-1</span>
<div id="cmd_-1836442477" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dates = tq(1975q1)+_n-1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dates">dates</a> = <a href="../tokens/t.html#tq">tq(</a><a href="../files/_StataProgramFiles_Section 2.do.html#13">1975q1</a>)+<a href="../tokens/_.html#_n">_n</a>-1</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_systemcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="14" title="tsset"><!-- -->
14</a> <a onclick='toggle("cmd_2073843029");' title="tsset">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsset</span>
<span class="cmdparameters"><a href="../tokens/d.html#dates">dates</a></span>
, <span class="cmdoptions"> <a href="../tokens/q.html#quarterly">quarterly</a></span>
<div id="cmd_2073843029" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsset dates, quarterly</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">tsset</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/q.html#quarterly">quarterly</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dates">dates</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Generate required variables</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="17" title="g"><!-- -->
17</a> <a onclick='toggle("cmd_2000146400");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dsav">dsav</a> = (<a href="../variables/income.html">income</a>-<a href="../files/_StataProgramFiles_Section 2.do.html#17">consump</a>)-(<a href="../tokens/l.html#L4">L4</a>.<a href="../variables/income.html">income</a>-<a href="../tokens/l.html#L4">L4</a>.<a href="../files/_StataProgramFiles_Section 2.do.html#17">consump</a>)</span>
<div id="cmd_2000146400" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Generate required variables
qui g dsav = (income-consump)-(L4.income-L4.consump)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dsav">dsav</a> = (<a href="../variables/income.html">income</a>-<a href="../files/_StataProgramFiles_Section 2.do.html#17">consump</a>)-(<a href="../tokens/l.html#L4">L4</a>.<a href="../variables/income.html">income</a>-<a href="../tokens/l.html#L4">L4</a>.<a href="../files/_StataProgramFiles_Section 2.do.html#17">consump</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="18" title="g"><!-- -->
18</a> <a onclick='toggle("cmd_2040780258");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dincome">dincome</a> = <a href="../variables/income.html">income</a>-<a href="../tokens/l.html#L4">L4</a>.<a href="../variables/income.html">income</a></span>
<div id="cmd_2040780258" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g dincome = income-L4.income</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dincome">dincome</a> = <a href="../variables/income.html">income</a>-<a href="../tokens/l.html#L4">L4</a>.<a href="../variables/income.html">income</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="19" title="g"><!-- -->
19</a> <a onclick='toggle("cmd_-725362973");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/r.html#real">real</a> = <a href="../tokens/i.html#interest">interest</a>-<a href="../files/_StataProgramFiles_Section 2.do.html#19">100*log(</a><a href="../tokens/p.html#price">price</a>/<a href="../tokens/l.html#L4">L4</a>.<a href="../tokens/p.html#price">price</a>)</span>
<div id="cmd_-725362973" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g real = interest-100*log(price/L4.price)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/r.html#real">real</a> = <a href="../tokens/i.html#interest">interest</a>-<a href="../files/_StataProgramFiles_Section 2.do.html#19">100*log(</a><a href="../tokens/p.html#price">price</a>/<a href="../tokens/l.html#L4">L4</a>.<a href="../tokens/p.html#price">price</a>)</td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="20" title="g"><!-- -->
20</a> <a onclick='toggle("cmd_2059788085");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dreal">dreal</a> = <a href="../tokens/r.html#real">real</a>-<a href="../tokens/l.html#L4">L4</a>.<a href="../tokens/r.html#real">real</a></span>
<div id="cmd_2059788085" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g dreal = real-L4.real</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dreal">dreal</a> = <a href="../tokens/r.html#real">real</a>-<a href="../tokens/l.html#L4">L4</a>.<a href="../tokens/r.html#real">real</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Estimate using OLS</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="23" title="reg"><!-- -->
23</a> <a onclick='toggle("cmd_-1279010992");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/d.html#dsav">dsav</a> <a href="../tokens/d.html#dincome">dincome</a> <a href="../tokens/d.html#dreal">dreal</a></span>
<div id="cmd_-1279010992" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Estimate using OLS
reg dsav dincome dreal</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dsav">dsav</a> <a href="../tokens/d.html#dincome">dincome</a> <a href="../tokens/d.html#dreal">dreal</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> * check for autocorrelation</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="26" title="estat"><!-- -->
26</a> <a onclick='toggle("cmd_-1567322817");' title="estat">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">estat</span>
<span class="cmdparameters"><a href="../files/_StataProgramFiles_Section 2.do.html#26">dwatson</a></span>
<div id="cmd_-1567322817" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* check for autocorrelation
estat dwatson</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">estat</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../files/_StataProgramFiles_Section 2.do.html#26">dwatson</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="28" title="comment"><!-- -->
28</a> <a onclick='toggle("cmd_1705326084");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* check coefficients against expectations.
* We expect savings to be positively correlated with income. b1 > 0.
* We expect savings to be positively correlated with interest. b2 >0.</span>
<div id="cmd_1705326084" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* check coefficients against expectations.
* We expect savings to be positively correlated with income. b1 > 0.
* We expect savings to be positively correlated with interest. b2 >0.</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">* check coefficients against expectations.
* We expect savings to be positively correlated with income. b1 > 0.
* We expect savings to be positively correlated with interest. b2 >0.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="32" title="comment"><!-- -->
32</a> <a onclick='toggle("cmd_343130012");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* check statistics.
* R^2 and adjR^2 show above 80% of variation in savings is explained by the model.
* F statistic is highly significant
* DW test statistic indicates likely positive autocorrelation.</span>
<div id="cmd_343130012" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* check statistics.
* R^2 and adjR^2 show above 80% of variation in savings is explained by the model.
* F statistic is highly significant
* DW test statistic indicates likely positive autocorrelation.</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* check statistics.
* R^2 and adjR^2 show above 80% of variation in savings is explained by the model.
* F statistic is highly significant
* DW test statistic indicates likely positive autocorrelation.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 5. (a) Plot residuals</div></td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="38" title="predict"><!-- -->
38</a> <a onclick='toggle("cmd_-1592068925");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/r.html#resid">resid</a></span>
, <span class="cmdoptions"> <a href="../tokens/r.html#residuals">residuals</a></span>
<div id="cmd_-1592068925" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 5. (a) Plot residuals
predict resid, residuals</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/r.html#residuals">residuals</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/r.html#resid">resid</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="39" title="scatter"><!-- -->
39</a> <a onclick='toggle("cmd_431140167");' title="scatter">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">scatter</span>
<span class="cmdparameters"><a href="../tokens/r.html#resid">resid</a> <a href="../tokens/d.html#dates">dates</a></span>
<div id="cmd_431140167" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">scatter resid dates</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">scatter</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/r.html#resid">resid</a> <a href="../tokens/d.html#dates">dates</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> *The scatter plot dips from 1985 to 1993(?). *Have a look at fitted line against actual line</div></td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="43" title="predict"><!-- -->
43</a> <a onclick='toggle("cmd_381695726");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/f.html#fitted">fitted</a></span>
, <span class="cmdoptions"> <a href="../tokens/x.html#xb">xb</a></span>
<div id="cmd_381695726" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">*The scatter plot dips from 1985 to 1993(?).
*Have a look at fitted line against actual line
predict fitted, xb</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/x.html#xb">xb</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/f.html#fitted">fitted</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_statcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="44" title="twoway"><!-- -->
44</a> <a onclick='toggle("cmd_-2104309490");' title="twoway">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">twoway</span>
<span class="cmdparameters">(<a href="../tokens/t.html#tsline">tsline</a> <a href="../tokens/f.html#fitted">fitted</a>) (<a href="../tokens/t.html#tsline">tsline</a> <a href="../tokens/d.html#dsav">dsav</a>)</span>
<div id="cmd_-2104309490" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">twoway (tsline fitted) (tsline dsav)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">twoway</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">(<a href="../tokens/t.html#tsline">tsline</a> <a href="../tokens/f.html#fitted">fitted</a>) (<a href="../tokens/t.html#tsline">tsline</a> <a href="../tokens/d.html#dsav">dsav</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 5. (b) test normality of residuals</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="47" title="sktest"><!-- -->
47</a> <a onclick='toggle("cmd_-448134382");' title="sktest">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">sktest</span>
<span class="cmdparameters"><a href="../tokens/r.html#resid">resid</a></span>
<div id="cmd_-448134382" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 5. (b) test normality of residuals
sktest resid</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">sktest</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/r.html#resid">resid</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="48" title="comment"><!-- -->
48</a> <a onclick='toggle("cmd_-684837894");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">*sktest null hypothesis: variable is normal</span>
<div id="cmd_-684837894" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">*sktest null hypothesis: variable is normal</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">*sktest null hypothesis: variable is normal</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 5. (c) test second order autocorrelation (Breusch-Godfrey test)</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="51" title="estat"><!-- -->
51</a> <a onclick='toggle("cmd_-2070323844");' title="estat">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">estat</span>
<span class="cmdparameters"><a href="../tokens/b.html#bgodfrey">bgodfrey</a></span>
, <span class="cmdoptions"> <a href="../tokens/l.html#lags">lags(</a>2)</span>
<div id="cmd_-2070323844" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 5. (c) test second order autocorrelation (Breusch-Godfrey test)
estat bgodfrey, lags(2)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">estat</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/l.html#lags">lags(</a>2)</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/b.html#bgodfrey">bgodfrey</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="52" title="comment"><!-- -->
52</a> <a onclick='toggle("cmd_-790951605");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* H0: No autocorrelation
* Second order correlation - yes</span>
<div id="cmd_-790951605" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* H0: No autocorrelation
* Second order correlation - yes</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">* H0: No autocorrelation
* Second order correlation - yes</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 5. (d) White's test for heteroskedasticity</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="56" title="imtest"><!-- -->
56</a> <a onclick='toggle("cmd_582905034");' title="imtest">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">imtest</span>
<span class="cmdparameters"></span>
, <span class="cmdoptions"> <a href="../tokens/w.html#white">white</a></span>
<div id="cmd_582905034" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 5. (d) White's test for heteroskedasticity
imtest, white</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">imtest</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/w.html#white">white</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="57" title="comment"><!-- -->
57</a> <a onclick='toggle("cmd_435139497");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* H0: homoskedastic
* Heteroskedastic - no</span>
<div id="cmd_435139497" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* H0: homoskedastic
* Heteroskedastic - no</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* H0: homoskedastic
* Heteroskedastic - no</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="61" title="comment"><!-- -->
61</a> <a onclick='toggle("cmd_125700566");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_125700566" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="64" title="comment"><!-- -->
64</a> <a onclick='toggle("cmd_-1196126325");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Extended Exercise 2 {Demand for Money in Kenya}</span>
<div id="cmd_-1196126325" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Extended Exercise 2 {Demand for Money in Kenya}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Extended Exercise 2 {Demand for Money in Kenya}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="68" title="webuse"><!-- -->
68</a> <a onclick='toggle("cmd_1479779095");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 2.do.html#68">kenya</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_1479779095" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "kenya.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 2.do.html#68">kenya</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> //set time variable</div></td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="70" title="rename"><!-- -->
70</a> <a onclick='toggle("cmd_-55774441");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../tokens/o.html#obs">obs</a> <a href="../tokens/d.html#dates">dates</a></span>
<div id="cmd_-55774441" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">//set time variable
rename obs dates</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/o.html#obs">obs</a> <a href="../tokens/d.html#dates">dates</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_systemcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="71" title="tsset"><!-- -->
71</a> <a onclick='toggle("cmd_1202613132");' title="tsset">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsset</span>
<span class="cmdparameters"><a href="../tokens/d.html#dates">dates</a></span>
, <span class="cmdoptions"> <a href="../tokens/y.html#yearly">yearly</a></span>
<div id="cmd_1202613132" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsset dates, yearly</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">tsset</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/y.html#yearly">yearly</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dates">dates</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Generate required variables</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="74" title="g"><!-- -->
74</a> <a onclick='toggle("cmd_-1930995255");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/l.html#lm2cpi">lm2cpi</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#74">m2</a>/<a href="../tokens/c.html#cpi">cpi</a>)</span>
<div id="cmd_-1930995255" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Generate required variables
qui g lm2cpi = log(m2/cpi)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/l.html#lm2cpi">lm2cpi</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#74">m2</a>/<a href="../tokens/c.html#cpi">cpi</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="75" title="g"><!-- -->
75</a> <a onclick='toggle("cmd_-1481112091");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dlm">dlm</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lm2cpi">lm2cpi</a></span>
<div id="cmd_-1481112091" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g dlm = D1.lm2cpi</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dlm">dlm</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lm2cpi">lm2cpi</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="76" title="g"><!-- -->
76</a> <a onclick='toggle("cmd_565497085");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/l.html#lngdpcpi">lngdpcpi</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#76">ngdp</a>/<a href="../tokens/c.html#cpi">cpi</a>)</span>
<div id="cmd_565497085" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g lngdpcpi = log(ngdp/cpi)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/l.html#lngdpcpi">lngdpcpi</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#76">ngdp</a>/<a href="../tokens/c.html#cpi">cpi</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="77" title="g"><!-- -->
77</a> <a onclick='toggle("cmd_-1258731162");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dly">dly</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lngdpcpi">lngdpcpi</a></span>
<div id="cmd_-1258731162" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g dly = D1.lngdpcpi</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dly">dly</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lngdpcpi">lngdpcpi</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="78" title="g"><!-- -->
78</a> <a onclick='toggle("cmd_426520582");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/i.html#interestpc">interestpc</a> = <a href="../tokens/i.html#interest">interest</a>/100</span>
<div id="cmd_426520582" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g interestpc = interest/100</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/i.html#interestpc">interestpc</a> = <a href="../tokens/i.html#interest">interest</a>/100</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="79" title="g"><!-- -->
79</a> <a onclick='toggle("cmd_2107823467");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#di">di</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/i.html#interestpc">interestpc</a></span>
<div id="cmd_2107823467" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g di = D1.interestpc</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#di">di</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/i.html#interestpc">interestpc</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Regress</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="82" title="reg"><!-- -->
82</a> <a onclick='toggle("cmd_-1577682200");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/d.html#dlm">dlm</a> <a href="../tokens/d.html#dly">dly</a> <a href="../tokens/d.html#di">di</a></span>
<div id="cmd_-1577682200" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Regress
reg dlm dly di</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dlm">dlm</a> <a href="../tokens/d.html#dly">dly</a> <a href="../tokens/d.html#di">di</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Check OLS assumptions</div></td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="85" title="predict"><!-- -->
85</a> <a onclick='toggle("cmd_-799136172");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/d.html#double">double</a> <a href="../tokens/r.html#resid">resid</a></span>
, <span class="cmdoptions"><a href="../tokens/r.html#residuals">residuals</a></span>
<div id="cmd_-799136172" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Check OLS assumptions
predict double resid,residuals</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"><a href="../tokens/r.html#residuals">residuals</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#double">double</a> <a href="../tokens/r.html#resid">resid</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="86" title="tsline"><!-- -->
86</a> <a onclick='toggle("cmd_-79854835");' title="tsline">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsline</span>
<span class="cmdparameters"><a href="../tokens/r.html#resid">resid</a></span>
<div id="cmd_-79854835" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsline resid</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">tsline</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/r.html#resid">resid</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="88" title="sktest"><!-- -->
88</a> <a onclick='toggle("cmd_-50612074");' title="sktest">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">sktest</span>
<span class="cmdparameters"><a href="../tokens/r.html#resid">resid</a> // <a href="../tokens/c.html#Check">Check</a> <a href="../files/_StataProgramFiles_Section 2.do.html#88">normality</a></span>
<div id="cmd_-50612074" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">sktest resid // Check normality</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">sktest</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/r.html#resid">resid</a> // <a href="../tokens/c.html#Check">Check</a> <a href="../files/_StataProgramFiles_Section 2.do.html#88">normality</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="90" title="estat"><!-- -->
90</a> <a onclick='toggle("cmd_732746393");' title="estat">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">estat</span>
<span class="cmdparameters"><a href="../tokens/b.html#bgodfrey">bgodfrey</a></span>
, <span class="cmdoptions"> <a href="../tokens/l.html#lags">lags(</a>1) // <a href="../tokens/c.html#Check">Check</a> <a href="../files/_StataProgramFiles_Section 2.do.html#90">autocorrelation</a></span>
<div id="cmd_732746393" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">estat bgodfrey, lags(1) // Check autocorrelation</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">estat</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/l.html#lags">lags(</a>1) // <a href="../tokens/c.html#Check">Check</a> <a href="../files/_StataProgramFiles_Section 2.do.html#90">autocorrelation</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/b.html#bgodfrey">bgodfrey</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="92" title="imtest"><!-- -->
92</a> <a onclick='toggle("cmd_1699082545");' title="imtest">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">imtest</span>
<span class="cmdparameters"></span>
, <span class="cmdoptions"> <a href="../tokens/w.html#white">white</a> // <a href="../tokens/c.html#Check">Check</a> <a href="../tokens/h.html#heteroskedasticity">heteroskedasticity</a></span>
<div id="cmd_1699082545" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">imtest, white // Check heteroskedasticity</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">imtest</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/w.html#white">white</a> // <a href="../tokens/c.html#Check">Check</a> <a href="../tokens/h.html#heteroskedasticity">heteroskedasticity</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Other tests</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="95" title="test"><!-- -->
95</a> <a onclick='toggle("cmd_1121416355");' title="test">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">test</span>
<span class="cmdparameters"><a href="../tokens/d.html#dly">dly</a></span>
<div id="cmd_1121416355" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 3. Other tests
test dly</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">test</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dly">dly</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="96" title="test"><!-- -->
96</a> <a onclick='toggle("cmd_1968424675");' title="test">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">test</span>
<span class="cmdparameters">(<a href="../tokens/d.html#dly">dly</a>=1) (<a href="../tokens/d.html#di">di</a>=0)</span>
<div id="cmd_1968424675" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">test (dly=1) (di=0)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">test</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">(<a href="../tokens/d.html#dly">dly</a>=1) (<a href="../tokens/d.html#di">di</a>=0)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="99" title="comment"><!-- -->
99</a> <a onclick='toggle("cmd_1460219604");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_1460219604" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="102" title="comment"><!-- -->
102</a> <a onclick='toggle("cmd_-607022464");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Extended Exercise 3 {Inflation Hikes in Kenya}</span>
<div id="cmd_-607022464" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Extended Exercise 3 {Inflation Hikes in Kenya}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Extended Exercise 3 {Inflation Hikes in Kenya}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> ********************************************** // 1. Plot inflation</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="107" title="tsline"><!-- -->
107</a> <a onclick='toggle("cmd_486077702");' title="tsline">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsline</span>
<span class="cmdparameters"><a href="../tokens/i.html#inf">inf</a></span>
<div id="cmd_486077702" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
// 1. Plot inflation
tsline inf</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">tsline</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/i.html#inf">inf</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Estimate the inflation model</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="110" title="g"><!-- -->
110</a> <a onclick='toggle("cmd_-186578820");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/g.html#growth">growth</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lngdpcpi">lngdpcpi</a></span>
<div id="cmd_-186578820" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Estimate the inflation model
qui g growth = D1.lngdpcpi</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/g.html#growth">growth</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lngdpcpi">lngdpcpi</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="111" title="g"><!-- -->
111</a> <a onclick='toggle("cmd_-111890319");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/l.html#lerate">lerate</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#111">erate</a>)</span>
<div id="cmd_-111890319" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g lerate = log(erate)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/l.html#lerate">lerate</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#111">erate</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="112" title="g"><!-- -->
112</a> <a onclick='toggle("cmd_1890646697");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/e.html#erets">erets</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lerate">lerate</a></span>
<div id="cmd_1890646697" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g erets = D1.lerate</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/e.html#erets">erets</a> = <a href="../tokens/d.html#D1">D1</a>.<a href="../tokens/l.html#lerate">lerate</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="114" title="reg"><!-- -->
114</a> <a onclick='toggle("cmd_-312658147");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/i.html#inf">inf</a> <a href="../tokens/g.html#growth">growth</a> <a href="../tokens/e.html#erets">erets</a></span>
<div id="cmd_-312658147" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg inf growth erets</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/i.html#inf">inf</a> <a href="../tokens/g.html#growth">growth</a> <a href="../tokens/e.html#erets">erets</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="116" title="predict"><!-- -->
116</a> <a onclick='toggle("cmd_-1351791966");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/d.html#double">double</a> e</span>
, <span class="cmdoptions"> <a href="../tokens/r.html#residuals">residuals</a></span>
<div id="cmd_-1351791966" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">predict double e, residuals</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/r.html#residuals">residuals</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#double">double</a> e</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="117" title="tsline"><!-- -->
117</a> <a onclick='toggle("cmd_-46493704");' title="tsline">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsline</span>
<span class="cmdparameters">e</span>
<div id="cmd_-46493704" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsline e</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">tsline</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">e</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Estimate inflation model with structural break</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="120" title="g"><!-- -->
120</a> <a onclick='toggle("cmd_-1025631510");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dum">dum</a> = (1992<=<a href="../tokens/d.html#dates">dates</a> & <a href="../tokens/d.html#dates">dates</a><=1994) // <a href="../tokens/t.html#This">This</a> <a href="../files/_StataProgramFiles_Section 2.do.html#120">creates</a> a <a href="../files/_StataProgramFiles_Section 2.do.html#120">dummy</a> <a href="../tokens/v.html#variable">variable</a> <a href="../tokens/f.html#for">for</a> 1992 < <a href="../tokens/d.html#dates">dates</a> < 1994</span>
<div id="cmd_-1025631510" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 3. Estimate inflation model with structural break
qui g dum = (1992<=dates & dates<=1994) // This creates a dummy variable for 1992 < dates < 1994</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dum">dum</a> = (1992<=<a href="../tokens/d.html#dates">dates</a> & <a href="../tokens/d.html#dates">dates</a><=1994) // <a href="../tokens/t.html#This">This</a> <a href="../files/_StataProgramFiles_Section 2.do.html#120">creates</a> a <a href="../files/_StataProgramFiles_Section 2.do.html#120">dummy</a> <a href="../tokens/v.html#variable">variable</a> <a href="../tokens/f.html#for">for</a> 1992 < <a href="../tokens/d.html#dates">dates</a> < 1994</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="121" title="reg"><!-- -->
121</a> <a onclick='toggle("cmd_1146152616");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/i.html#inf">inf</a> <a href="../tokens/g.html#growth">growth</a> <a href="../tokens/e.html#erets">erets</a> <a href="../tokens/d.html#dum">dum</a></span>
<div id="cmd_1146152616" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg inf growth erets dum</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/i.html#inf">inf</a> <a href="../tokens/g.html#growth">growth</a> <a href="../tokens/e.html#erets">erets</a> <a href="../tokens/d.html#dum">dum</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="123" title="predict"><!-- -->
123</a> <a onclick='toggle("cmd_-2052387324");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/d.html#double">double</a> <a href="../tokens/e.html#e_dum">e_dum</a></span>
, <span class="cmdoptions"><a href="../tokens/r.html#residuals">residuals</a></span>
<div id="cmd_-2052387324" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">predict double e_dum,residuals</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"><a href="../tokens/r.html#residuals">residuals</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#double">double</a> <a href="../tokens/e.html#e_dum">e_dum</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="124" title="tsline"><!-- -->
124</a> <a onclick='toggle("cmd_-741161303");' title="tsline">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsline</span>
<span class="cmdparameters"><a href="../tokens/e.html#e_dum">e_dum</a></span>
<div id="cmd_-741161303" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsline e_dum</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">tsline</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/e.html#e_dum">e_dum</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="127" title="comment"><!-- -->
127</a> <a onclick='toggle("cmd_1269510613");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_1269510613" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="130" title="comment"><!-- -->
130</a> <a onclick='toggle("cmd_-317099232");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Extended Exercise 4 {Threshold Model of US Growth}</span>
<div id="cmd_-317099232" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Extended Exercise 4 {Threshold Model of US Growth}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Extended Exercise 4 {Threshold Model of US Growth}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="134" title="webuse"><!-- -->
134</a> <a onclick='toggle("cmd_-778072843");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 2.do.html#134">thresh1</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"><a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_-778072843" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "thresh1.dta",clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"><a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 2.do.html#134">thresh1</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="136" title="rename"><!-- -->
136</a> <a onclick='toggle("cmd_-776117371");' title="rename">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">rename</span>
<span class="cmdparameters"><a href="../tokens/o.html#obs">obs</a> <a href="../tokens/y.html#year">year</a></span>
<div id="cmd_-776117371" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">rename obs year</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">rename</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/o.html#obs">obs</a> <a href="../tokens/y.html#year">year</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_systemcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="137" title="tsset"><!-- -->
137</a> <a onclick='toggle("cmd_-84669010");' title="tsset">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsset</span>
<span class="cmdparameters"><a href="../tokens/y.html#year">year</a></span>
, <span class="cmdoptions"> <a href="../tokens/y.html#yearly">yearly</a></span>
<div id="cmd_-84669010" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsset year, yearly</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">tsset</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/y.html#yearly">yearly</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/y.html#year">year</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // The "growth" and "inf" variables provided are incorrect. // Drop wrong variables</div></td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="141" title="drop"><!-- -->
141</a> <a onclick='toggle("cmd_-1172375815");' title="drop">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">drop</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a></span>
<div id="cmd_-1172375815" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// The "growth" and "inf" variables provided are incorrect.
// Drop wrong variables
drop growth inf</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">drop</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Create required variables</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="144" title="g"><!-- -->
144</a> <a onclick='toggle("cmd_1402035151");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/l.html#lyus">lyus</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#144">y_us</a>)</span>
<div id="cmd_1402035151" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Create required variables
qui g lyus = log(y_us)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/l.html#lyus">lyus</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#144">y_us</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="145" title="g"><!-- -->
145</a> <a onclick='toggle("cmd_1660366896");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/g.html#growth">growth</a> = <a href="../tokens/1.html#100D1">100*D1</a>.<a href="../tokens/l.html#lyus">lyus</a></span>
<div id="cmd_1660366896" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g growth = 100*D1.lyus</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/g.html#growth">growth</a> = <a href="../tokens/1.html#100D1">100*D1</a>.<a href="../tokens/l.html#lyus">lyus</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="146" title="g"><!-- -->
146</a> <a onclick='toggle("cmd_-440089665");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/l.html#lpus">lpus</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#146">p_us</a>)</span>
<div id="cmd_-440089665" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g lpus = log(p_us)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/l.html#lpus">lpus</a> = <a href="../tokens/l.html#log">log(</a><a href="../files/_StataProgramFiles_Section 2.do.html#146">p_us</a>)</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="147" title="g"><!-- -->
147</a> <a onclick='toggle("cmd_-782956430");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/i.html#inf">inf</a> = <a href="../tokens/1.html#100D1">100*D1</a>.<a href="../tokens/l.html#lpus">lpus</a></span>
<div id="cmd_-782956430" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g inf = 100*D1.lpus</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/i.html#inf">inf</a> = <a href="../tokens/1.html#100D1">100*D1</a>.<a href="../tokens/l.html#lpus">lpus</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // What is the value of k? First, identify appropriate value of k. // Estimate the model using all feasible values for k (k=1,...,9), and use k that gives the lowest RSS.</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="151" title="g"><!-- -->
151</a> <a onclick='toggle("cmd_1665754505");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d1">d1</a> = (<a href="../tokens/i.html#inf">inf</a>>1) // k=1</span>
<div id="cmd_1665754505" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// What is the value of k? First, identify appropriate value of k.
// Estimate the model using all feasible values for k (k=1,...,9), and use k that gives the lowest RSS.
g d1 = (inf>1) // k=1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d1">d1</a> = (<a href="../tokens/i.html#inf">inf</a>>1) // k=1</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="152" title="g"><!-- -->
152</a> <a onclick='toggle("cmd_1641508065");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d2">d2</a> = (<a href="../tokens/i.html#inf">inf</a>>2) // k=2</span>
<div id="cmd_1641508065" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d2 = (inf>2) // k=2</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d2">d2</a> = (<a href="../tokens/i.html#inf">inf</a>>2) // k=2</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="153" title="g"><!-- -->
153</a> <a onclick='toggle("cmd_-756997879");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d3">d3</a> = (<a href="../tokens/i.html#inf">inf</a>>3) // k=3</span>
<div id="cmd_-756997879" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d3 = (inf>3) // k=3</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d3">d3</a> = (<a href="../tokens/i.html#inf">inf</a>>3) // k=3</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="154" title="g"><!-- -->
154</a> <a onclick='toggle("cmd_813170523");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d4">d4</a> = (<a href="../tokens/i.html#inf">inf</a>>4) // k=4</span>
<div id="cmd_813170523" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d4 = (inf>4) // k=4</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d4">d4</a> = (<a href="../tokens/i.html#inf">inf</a>>4) // k=4</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="155" title="g"><!-- -->
155</a> <a onclick='toggle("cmd_-356527014");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d5">d5</a> = (<a href="../tokens/i.html#inf">inf</a>>5) // k=5</span>
<div id="cmd_-356527014" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d5 = (inf>5) // k=5</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d5">d5</a> = (<a href="../tokens/i.html#inf">inf</a>>5) // k=5</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="156" title="g"><!-- -->
156</a> <a onclick='toggle("cmd_-568143240");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d6">d6</a> = (<a href="../tokens/i.html#inf">inf</a>>6) // k=6</span>
<div id="cmd_-568143240" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d6 = (inf>6) // k=6</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d6">d6</a> = (<a href="../tokens/i.html#inf">inf</a>>6) // k=6</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="157" title="g"><!-- -->
157</a> <a onclick='toggle("cmd_1526936759");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d7">d7</a> = (<a href="../tokens/i.html#inf">inf</a>>7) // k=7</span>
<div id="cmd_1526936759" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d7 = (inf>7) // k=7</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d7">d7</a> = (<a href="../tokens/i.html#inf">inf</a>>7) // k=7</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="158" title="g"><!-- -->
158</a> <a onclick='toggle("cmd_-1072324202");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d8">d8</a> = (<a href="../tokens/i.html#inf">inf</a>>8) // k=8</span>
<div id="cmd_-1072324202" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d8 = (inf>8) // k=8</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d8">d8</a> = (<a href="../tokens/i.html#inf">inf</a>>8) // k=8</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="159" title="g"><!-- -->
159</a> <a onclick='toggle("cmd_8704674");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#d9">d9</a> = (<a href="../tokens/i.html#inf">inf</a>>9) // k=9</span>
<div id="cmd_8704674" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g d9 = (inf>9) // k=9</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#d9">d9</a> = (<a href="../tokens/i.html#inf">inf</a>>9) // k=9</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="161" title="g"><!-- -->
161</a> <a onclick='toggle("cmd_-652712275");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf1">dinf1</a> = <a href="../tokens/d.html#d1">d1*</a> (<a href="../tokens/i.html#inf">inf</a>-1)</span>
<div id="cmd_-652712275" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf1 = d1* (inf-1)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf1">dinf1</a> = <a href="../tokens/d.html#d1">d1*</a> (<a href="../tokens/i.html#inf">inf</a>-1)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="162" title="g"><!-- -->
162</a> <a onclick='toggle("cmd_-1813922827");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf2">dinf2</a> = <a href="../tokens/d.html#d2">d2*</a> (<a href="../tokens/i.html#inf">inf</a>-2)</span>
<div id="cmd_-1813922827" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf2 = d2* (inf-2)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf2">dinf2</a> = <a href="../tokens/d.html#d2">d2*</a> (<a href="../tokens/i.html#inf">inf</a>-2)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="163" title="g"><!-- -->
163</a> <a onclick='toggle("cmd_1301144313");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf3">dinf3</a> = <a href="../tokens/d.html#d3">d3*</a> (<a href="../tokens/i.html#inf">inf</a>-3)</span>
<div id="cmd_1301144313" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf3 = d3* (inf-3)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf3">dinf3</a> = <a href="../tokens/d.html#d3">d3*</a> (<a href="../tokens/i.html#inf">inf</a>-3)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="164" title="g"><!-- -->
164</a> <a onclick='toggle("cmd_1371024933");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf4">dinf4</a> = <a href="../tokens/d.html#d4">d4*</a> (<a href="../tokens/i.html#inf">inf</a>-4)</span>
<div id="cmd_1371024933" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf4 = d4* (inf-4)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf4">dinf4</a> = <a href="../tokens/d.html#d4">d4*</a> (<a href="../tokens/i.html#inf">inf</a>-4)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="165" title="g"><!-- -->
165</a> <a onclick='toggle("cmd_368709146");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf5">dinf5</a> = <a href="../tokens/d.html#d5">d5*</a> (<a href="../tokens/i.html#inf">inf</a>-5)</span>
<div id="cmd_368709146" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf5 = d5* (inf-5)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf5">dinf5</a> = <a href="../tokens/d.html#d5">d5*</a> (<a href="../tokens/i.html#inf">inf</a>-5)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="166" title="g"><!-- -->
166</a> <a onclick='toggle("cmd_597270921");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf6">dinf6</a> = <a href="../tokens/d.html#d6">d6*</a> (<a href="../tokens/i.html#inf">inf</a>-6)</span>
<div id="cmd_597270921" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf6 = d6* (inf-6)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf6">dinf6</a> = <a href="../tokens/d.html#d6">d6*</a> (<a href="../tokens/i.html#inf">inf</a>-6)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="167" title="g"><!-- -->
167</a> <a onclick='toggle("cmd_-1394745246");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf7">dinf7</a> = <a href="../tokens/d.html#d7">d7*</a> (<a href="../tokens/i.html#inf">inf</a>-7)</span>
<div id="cmd_-1394745246" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf7 = d7* (inf-7)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf7">dinf7</a> = <a href="../tokens/d.html#d7">d7*</a> (<a href="../tokens/i.html#inf">inf</a>-7)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="168" title="g"><!-- -->
168</a> <a onclick='toggle("cmd_-1996900514");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf8">dinf8</a> = <a href="../tokens/d.html#d8">d8*</a> (<a href="../tokens/i.html#inf">inf</a>-8)</span>
<div id="cmd_-1996900514" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf8 = d8* (inf-8)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf8">dinf8</a> = <a href="../tokens/d.html#d8">d8*</a> (<a href="../tokens/i.html#inf">inf</a>-8)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="169" title="g"><!-- -->
169</a> <a onclick='toggle("cmd_495646976");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dinf9">dinf9</a> = <a href="../tokens/d.html#d9">d9*</a> (<a href="../tokens/i.html#inf">inf</a>-9)</span>
<div id="cmd_495646976" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dinf9 = d9* (inf-9)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dinf9">dinf9</a> = <a href="../tokens/d.html#d9">d9*</a> (<a href="../tokens/i.html#inf">inf</a>-9)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="171" title="reg"><!-- -->
171</a> <a onclick='toggle("cmd_-1334911740");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf1">dinf1</a> // k=1</span>
<div id="cmd_-1334911740" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf1 // k=1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf1">dinf1</a> // k=1</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="172" title="reg"><!-- -->
172</a> <a onclick='toggle("cmd_-657434188");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf2">dinf2</a> // k=2</span>
<div id="cmd_-657434188" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf2 // k=2</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf2">dinf2</a> // k=2</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="173" title="reg"><!-- -->
173</a> <a onclick='toggle("cmd_1502427688");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf3">dinf3</a> // k=3</span>
<div id="cmd_1502427688" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf3 // k=3</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf3">dinf3</a> // k=3</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="174" title="reg"><!-- -->
174</a> <a onclick='toggle("cmd_1973445931");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf4">dinf4</a> // k=4</span>
<div id="cmd_1973445931" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf4 // k=4</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf4">dinf4</a> // k=4</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="175" title="reg"><!-- -->
175</a> <a onclick='toggle("cmd_-310102413");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf5">dinf5</a> // k=5</span>
<div id="cmd_-310102413" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf5 // k=5</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf5">dinf5</a> // k=5</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="176" title="reg"><!-- -->
176</a> <a onclick='toggle("cmd_893915204");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf6">dinf6</a> // k=6</span>
<div id="cmd_893915204" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf6 // k=6</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf6">dinf6</a> // k=6</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="177" title="reg"><!-- -->
177</a> <a onclick='toggle("cmd_-266813141");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf7">dinf7</a> // k=7</span>
<div id="cmd_-266813141" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf7 // k=7</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf7">dinf7</a> // k=7</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="178" title="reg"><!-- -->
178</a> <a onclick='toggle("cmd_1172239814");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf8">dinf8</a> // k=8</span>
<div id="cmd_1172239814" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf8 // k=8</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf8">dinf8</a> // k=8</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="179" title="reg"><!-- -->
179</a> <a onclick='toggle("cmd_-447346676");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf9">dinf9</a> // k=9</span>
<div id="cmd_-447346676" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg growth inf dinf9 // k=9</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#growth">growth</a> <a href="../tokens/i.html#inf">inf</a> <a href="../tokens/d.html#dinf9">dinf9</a> // k=9</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="181" title="comment"><!-- -->
181</a> <a onclick='toggle("cmd_557132793");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// The RSS from each of the estimated models correspond to the values in Table 1 in the question
// k=7 has the lowest RSS.
// The appropriate model is the one with k=7</span>
<div id="cmd_557132793" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// The RSS from each of the estimated models correspond to the values in Table 1 in the question
// k=7 has the lowest RSS.
// The appropriate model is the one with k=7</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// The RSS from each of the estimated models correspond to the values in Table 1 in the question
// k=7 has the lowest RSS.
// The appropriate model is the one with k=7</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="186" title="comment"><!-- -->
186</a> <a onclick='toggle("cmd_1128940352");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">********************************************************************************
********************************************************************************</span>
<div id="cmd_1128940352" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">********************************************************************************
********************************************************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">********************************************************************************
********************************************************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="189" title="comment"><!-- -->
189</a> <a onclick='toggle("cmd_-1030900659");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercises</span>
<div id="cmd_-1030900659" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Exercises</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercises</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="191" title="comment"><!-- -->
191</a> <a onclick='toggle("cmd_1973994984");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">********************************************************************************
********************************************************************************</span>
<div id="cmd_1973994984" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">********************************************************************************
********************************************************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">********************************************************************************
********************************************************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="195" title="comment"><!-- -->
195</a> <a onclick='toggle("cmd_204489836");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 1 {US Population Survey Data}</span>
<div id="cmd_204489836" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Exercise 1 {US Population Survey Data}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 1 {US Population Survey Data}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="199" title="webuse"><!-- -->
199</a> <a onclick='toggle("cmd_1855056023");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../tokens/c.html#cpso8">cpso8</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_1855056023" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "cpso8.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../tokens/c.html#cpso8">cpso8</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate the model</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="202" title="reg"><!-- -->
202</a> <a onclick='toggle("cmd_163620564");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/a.html#ahe">ahe</a> <a href="../tokens/f.html#female">female</a></span>
<div id="cmd_163620564" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Estimate the model
reg ahe female</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/a.html#ahe">ahe</a> <a href="../tokens/f.html#female">female</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="203" title="comment"><!-- -->
203</a> <a onclick='toggle("cmd_-1455944494");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* The coefficient of "female" is significant, therefore the wage differential is significant</span>
<div id="cmd_-1455944494" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* The coefficient of "female" is significant, therefore the wage differential is significant</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">* The coefficient of "female" is significant, therefore the wage differential is significant</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Estimate model with additional factors</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="206" title="reg"><!-- -->
206</a> <a onclick='toggle("cmd_-127994989");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/a.html#ahe">ahe</a> <a href="../tokens/f.html#female">female</a> <a href="../tokens/b.html#bachelor">bachelor</a> <a href="../tokens/a.html#age">age</a></span>
<div id="cmd_-127994989" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Estimate model with additional factors
reg ahe female bachelor age</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/a.html#ahe">ahe</a> <a href="../tokens/f.html#female">female</a> <a href="../tokens/b.html#bachelor">bachelor</a> <a href="../tokens/a.html#age">age</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="207" title="comment"><!-- -->
207</a> <a onclick='toggle("cmd_-10432079");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* The coefficient of "female" is still significant, and has increased in magnitude.
* The other factors are also significant.</span>
<div id="cmd_-10432079" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* The coefficient of "female" is still significant, and has increased in magnitude.
* The other factors are also significant.</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">* The coefficient of "female" is still significant, and has increased in magnitude.
* The other factors are also significant.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="211" title="comment"><!-- -->
211</a> <a onclick='toggle("cmd_685339523");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_685339523" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="214" title="comment"><!-- -->
214</a> <a onclick='toggle("cmd_-1075776681");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 2 {CAPM}</span>
<div id="cmd_-1075776681" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Exercise 2 {CAPM}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 2 {CAPM}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="218" title="webuse"><!-- -->
218</a> <a onclick='toggle("cmd_2072431188");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../files/_StataProgramFiles_Section 2.do.html#218">capm</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_2072431188" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "capm.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../files/_StataProgramFiles_Section 2.do.html#218">capm</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="219" title="g"><!-- -->
219</a> <a onclick='toggle("cmd_32530445");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">g</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dates">dates</a> = <a href="../files/_StataProgramFiles_Section 2.do.html#219">tm(</a><a href="../files/_StataProgramFiles_Section 2.do.html#219">1998m1</a>)+<a href="../tokens/_.html#_n">_n</a>-1</span>
<div id="cmd_32530445" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui g dates = tm(1998m1)+_n-1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dates">dates</a> = <a href="../files/_StataProgramFiles_Section 2.do.html#219">tm(</a><a href="../files/_StataProgramFiles_Section 2.do.html#219">1998m1</a>)+<a href="../tokens/_.html#_n">_n</a>-1</td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_systemcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="220" title="tsset"><!-- -->
220</a> <a onclick='toggle("cmd_1259786865");' title="tsset">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsset</span>
<span class="cmdparameters"><a href="../tokens/d.html#dates">dates</a></span>
, <span class="cmdoptions"> <a href="../files/_StataProgramFiles_Section 2.do.html#220">monthly</a></span>
<div id="cmd_1259786865" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsset dates, monthly</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">tsset</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../files/_StataProgramFiles_Section 2.do.html#220">monthly</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dates">dates</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="221" title="comment"><!-- -->
221</a> <a onclick='toggle("cmd_-1770740502");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* Note that the dates only go until December 2007, not December 2008</span>
<div id="cmd_-1770740502" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* Note that the dates only go until December 2007, not December 2008</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* Note that the dates only go until December 2007, not December 2008</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Generate the market risk premium variable</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="224" title="g"><!-- -->
224</a> <a onclick='toggle("cmd_496368341");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/m.html#mrp">mrp</a> = <a href="../files/_StataProgramFiles_Section 2.do.html#224">mkt</a> - <a href="../tokens/r.html#rkfree">rkfree</a></span>
<div id="cmd_496368341" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Generate the market risk premium variable
g mrp = mkt - rkfree</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/m.html#mrp">mrp</a> = <a href="../files/_StataProgramFiles_Section 2.do.html#224">mkt</a> - <a href="../tokens/r.html#rkfree">rkfree</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // Generate firm risk premium</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="227" title="g"><!-- -->
227</a> <a onclick='toggle("cmd_19782416");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/m.html#msftpr">msftpr</a> = <a href="../tokens/m.html#msft">msft</a> - <a href="../tokens/r.html#rkfree">rkfree</a></span>
<div id="cmd_19782416" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Generate firm risk premium
g msftpr = msft - rkfree</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/m.html#msftpr">msftpr</a> = <a href="../tokens/m.html#msft">msft</a> - <a href="../tokens/r.html#rkfree">rkfree</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="228" title="g"><!-- -->
228</a> <a onclick='toggle("cmd_-500018001");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/g.html#gepr">gepr</a> = <a href="../tokens/g.html#ge">ge</a> - <a href="../tokens/r.html#rkfree">rkfree</a></span>
<div id="cmd_-500018001" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g gepr = ge - rkfree</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#gepr">gepr</a> = <a href="../tokens/g.html#ge">ge</a> - <a href="../tokens/r.html#rkfree">rkfree</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="229" title="g"><!-- -->
229</a> <a onclick='toggle("cmd_-1387637731");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/g.html#gmpr">gmpr</a> = <a href="../tokens/g.html#gm">gm</a> - <a href="../tokens/r.html#rkfree">rkfree</a></span>
<div id="cmd_-1387637731" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g gmpr = gm - rkfree</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/g.html#gmpr">gmpr</a> = <a href="../tokens/g.html#gm">gm</a> - <a href="../tokens/r.html#rkfree">rkfree</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="230" title="g"><!-- -->
230</a> <a onclick='toggle("cmd_230952629");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/i.html#ibmpr">ibmpr</a> = <a href="../tokens/i.html#ibm">ibm</a> - <a href="../tokens/r.html#rkfree">rkfree</a></span>
<div id="cmd_230952629" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g ibmpr = ibm - rkfree</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/i.html#ibmpr">ibmpr</a> = <a href="../tokens/i.html#ibm">ibm</a> - <a href="../tokens/r.html#rkfree">rkfree</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="231" title="g"><!-- -->
231</a> <a onclick='toggle("cmd_-1912571370");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/d.html#dispr">dispr</a> = <a href="../tokens/d.html#dis">dis</a> - <a href="../tokens/r.html#rkfree">rkfree</a></span>
<div id="cmd_-1912571370" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g dispr = dis - rkfree</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/d.html#dispr">dispr</a> = <a href="../tokens/d.html#dis">dis</a> - <a href="../tokens/r.html#rkfree">rkfree</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="232" title="g"><!-- -->
232</a> <a onclick='toggle("cmd_-1299887908");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/x.html#xompr">xompr</a> = <a href="../tokens/x.html#xom">xom</a> - <a href="../tokens/r.html#rkfree">rkfree</a></span>
<div id="cmd_-1299887908" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">g xompr = xom - rkfree</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/x.html#xompr">xompr</a> = <a href="../tokens/x.html#xom">xom</a> - <a href="../tokens/r.html#rkfree">rkfree</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate the CAPM model for each firm</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="235" title="reg"><!-- -->
235</a> <a onclick='toggle("cmd_366986203");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/m.html#msftpr">msftpr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#235">Microsoft</a></span>
<div id="cmd_366986203" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Estimate the CAPM model for each firm
qui reg msftpr mrp // Microsoft</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/m.html#msftpr">msftpr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#235">Microsoft</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="236" title="est"><!-- -->
236</a> <a onclick='toggle("cmd_1178817922");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#msft">msft</a> // -<a href="../files/_StataProgramFiles_Section 2.do.html#236">est</a>- <a href="../tokens/i.html#is">is</a> <a href="../tokens/a.html#an">an</a> <a href="../tokens/a.html#abbreviation">abbreviation</a> <a href="../tokens/o.html#of">of</a> -<a href="../tokens/e.html#estimates">estimates</a>-</span>
<div id="cmd_1178817922" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store msft // -est- is an abbreviation of -estimates-</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#msft">msft</a> // -<a href="../files/_StataProgramFiles_Section 2.do.html#236">est</a>- <a href="../tokens/i.html#is">is</a> <a href="../tokens/a.html#an">an</a> <a href="../tokens/a.html#abbreviation">abbreviation</a> <a href="../tokens/o.html#of">of</a> -<a href="../tokens/e.html#estimates">estimates</a>-</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="237" title="reg"><!-- -->
237</a> <a onclick='toggle("cmd_-1972847973");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/g.html#gepr">gepr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#237">GE</a></span>
<div id="cmd_-1972847973" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui reg gepr mrp // GE</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/g.html#gepr">gepr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#237">GE</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="238" title="est"><!-- -->
238</a> <a onclick='toggle("cmd_-638085958");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/g.html#ge">ge</a></span>
<div id="cmd_-638085958" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store ge</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/g.html#ge">ge</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="239" title="reg"><!-- -->
239</a> <a onclick='toggle("cmd_1236522312");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/g.html#gmpr">gmpr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#239">GM</a></span>
<div id="cmd_1236522312" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui reg gmpr mrp // GM</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/g.html#gmpr">gmpr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#239">GM</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="240" title="est"><!-- -->
240</a> <a onclick='toggle("cmd_-1204841080");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/g.html#gm">gm</a></span>
<div id="cmd_-1204841080" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store gm</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/g.html#gm">gm</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="241" title="reg"><!-- -->
241</a> <a onclick='toggle("cmd_335172326");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/i.html#ibmpr">ibmpr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#241">IBM</a></span>
<div id="cmd_335172326" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui reg ibmpr mrp // IBM</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/i.html#ibmpr">ibmpr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#241">IBM</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="242" title="est"><!-- -->
242</a> <a onclick='toggle("cmd_-1276333706");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#ibm">ibm</a></span>
<div id="cmd_-1276333706" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store ibm</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/i.html#ibm">ibm</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="243" title="reg"><!-- -->
243</a> <a onclick='toggle("cmd_-976429795");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/d.html#dispr">dispr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#243">Disney</a></span>
<div id="cmd_-976429795" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui reg dispr mrp // Disney</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/d.html#dispr">dispr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#243">Disney</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="244" title="est"><!-- -->
244</a> <a onclick='toggle("cmd_-1368291913");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/d.html#dis">dis</a></span>
<div id="cmd_-1368291913" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store dis</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/d.html#dis">dis</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="245" title="reg"><!-- -->
245</a> <a onclick='toggle("cmd_573861118");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/x.html#xompr">xompr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#245">Exxon</a>-<a href="../files/_StataProgramFiles_Section 2.do.html#245">Mobile</a></span>
<div id="cmd_573861118" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">qui reg xompr mrp // Exxon-Mobile</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/x.html#xompr">xompr</a> <a href="../tokens/m.html#mrp">mrp</a> // <a href="../files/_StataProgramFiles_Section 2.do.html#245">Exxon</a>-<a href="../files/_StataProgramFiles_Section 2.do.html#245">Mobile</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="246" title="est"><!-- -->
246</a> <a onclick='toggle("cmd_-265152288");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/x.html#xom">xom</a></span>
<div id="cmd_-265152288" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store xom</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/x.html#xom">xom</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Check intercept parameter // Display estimates</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="250" title="est"><!-- -->
250</a> <a onclick='toggle("cmd_-1910767009");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/m.html#msft">msft</a> <a href="../tokens/g.html#ge">ge</a> <a href="../tokens/g.html#gm">gm</a> <a href="../tokens/i.html#ibm">ibm</a> <a href="../tokens/d.html#dis">dis</a> <a href="../tokens/x.html#xom">xom</a></span>
, <span class="cmdoptions"> <a href="../tokens/s.html#star">star</a> <a href="../tokens/t.html#title">title(</a>"<a href="../files/_StataProgramFiles_Section 2.do.html#250">CAPM</a> <a href="../files/_StataProgramFiles_Section 2.do.html#250">Estimates</a>")</span>
<div id="cmd_-1910767009" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Check intercept parameter
// Display estimates
est table msft ge gm ibm dis xom, star title("CAPM Estimates")</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/s.html#star">star</a> <a href="../tokens/t.html#title">title(</a>"<a href="../files/_StataProgramFiles_Section 2.do.html#250">CAPM</a> <a href="../files/_StataProgramFiles_Section 2.do.html#250">Estimates</a>")</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/m.html#msft">msft</a> <a href="../tokens/g.html#ge">ge</a> <a href="../tokens/g.html#gm">gm</a> <a href="../tokens/i.html#ibm">ibm</a> <a href="../tokens/d.html#dis">dis</a> <a href="../tokens/x.html#xom">xom</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="251" title="comment"><!-- -->
251</a> <a onclick='toggle("cmd_-1250304606");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment"> // The -star- option uses stars to denote significance levels.
// See http://www.stata.com/manuals13/restimatestable.pdf
* None of the intercept parameters are significant, therefore finance theory holds</span>
<div id="cmd_-1250304606" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap"> // The -star- option uses stars to denote significance levels.
// See http://www.stata.com/manuals13/restimatestable.pdf
* None of the intercept parameters are significant, therefore finance theory holds</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast"> // The -star- option uses stars to denote significance levels.
// See http://www.stata.com/manuals13/restimatestable.pdf
* None of the intercept parameters are significant, therefore finance theory holds</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Microsoft // (a)</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="257" title="reg"><!-- -->
257</a> <a onclick='toggle("cmd_1735463903");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdprefix"><a href="../tokens/q.html#qui">qui</a></span>
<span class="cmdcommand">reg</span>
<span class="cmdparameters"> <a href="../tokens/m.html#msftpr">msftpr</a> <a href="../tokens/m.html#mrp">mrp</a></span>
<div id="cmd_1735463903" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 3. Microsoft
// (a)
qui reg msftpr mrp</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"> <a href="../tokens/m.html#msftpr">msftpr</a> <a href="../tokens/m.html#mrp">mrp</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">prefix</td>
<td class="colLast"><a href="../tokens/q.html#qui">qui</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_manipulate rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="258" title="predict"><!-- -->
258</a> <a onclick='toggle("cmd_-1605219555");' title="predict">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">predict</span>
<span class="cmdparameters"><a href="../tokens/p.html#pr_msftpr">pr_msftpr</a></span>
<div id="cmd_-1605219555" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">predict pr_msftpr</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">predict</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/p.html#pr_msftpr">pr_msftpr</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="260" title="tsline"><!-- -->
260</a> <a onclick='toggle("cmd_1301418688");' title="tsline">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">tsline</span>
<span class="cmdparameters"><a href="../tokens/m.html#msftpr">msftpr</a> <a href="../tokens/p.html#pr_msftpr">pr_msftpr</a></span>
<div id="cmd_1301418688" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">tsline msftpr pr_msftpr</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">tsline</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/m.html#msftpr">msftpr</a> <a href="../tokens/p.html#pr_msftpr">pr_msftpr</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // (b)</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="263" title="test"><!-- -->
263</a> <a onclick='toggle("cmd_2081557311");' title="test">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">test</span>
<span class="cmdparameters"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/m.html#mrp">mrp</a>]=1</span>
<div id="cmd_2081557311" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// (b)
test _b[mrp]=1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">test</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/m.html#mrp">mrp</a>]=1</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="264" title="comment"><!-- -->
264</a> <a onclick='toggle("cmd_603945569");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* p-value = 0.0241</span>
<div id="cmd_603945569" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* p-value = 0.0241</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* p-value = 0.0241</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="266" title="comment"><!-- -->
266</a> <a onclick='toggle("cmd_2048620951");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// (c)
// Since the estimate for beta is larger than 1, the p-value for the one-sided test is simply half of the p-value in part (b)
* p-value = 0.0241/2</span>
<div id="cmd_2048620951" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// (c)
// Since the estimate for beta is larger than 1, the p-value for the one-sided test is simply half of the p-value in part (b)
* p-value = 0.0241/2</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// (c)
// Since the estimate for beta is larger than 1, the p-value for the one-sided test is simply half of the p-value in part (b)
* p-value = 0.0241/2</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="271" title="comment"><!-- -->
271</a> <a onclick='toggle("cmd_1109660207");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_1109660207" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="274" title="comment"><!-- -->
274</a> <a onclick='toggle("cmd_703491305");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 3 {California School Districts Data}</span>
<div id="cmd_703491305" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Exercise 3 {California School Districts Data}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 3 {California School Districts Data}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="278" title="webuse"><!-- -->
278</a> <a onclick='toggle("cmd_-132848170");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../tokens/c.html#caschool">caschool</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_-132848170" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "caschool.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../tokens/c.html#caschool">caschool</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Draw scatterplot and regression line</div></td>
</tr>
<tr class="cmd_statcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="281" title="twoway"><!-- -->
281</a> <a onclick='toggle("cmd_127936133");' title="twoway">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">twoway</span>
<span class="cmdparameters">(<a href="../tokens/s.html#scatter">scatter</a> <a href="../tokens/t.html#testscr">testscr</a> <a href="../files/_StataProgramFiles_Section 2.do.html#281">avginc</a>) (<a href="../tokens/l.html#lfit">lfit</a> <a href="../tokens/t.html#testscr">testscr</a> <a href="../files/_StataProgramFiles_Section 2.do.html#281">avginc</a>)</span>
<div id="cmd_127936133" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Draw scatterplot and regression line
twoway (scatter testscr avginc) (lfit testscr avginc)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">twoway</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">(<a href="../tokens/s.html#scatter">scatter</a> <a href="../tokens/t.html#testscr">testscr</a> <a href="../files/_StataProgramFiles_Section 2.do.html#281">avginc</a>) (<a href="../tokens/l.html#lfit">lfit</a> <a href="../tokens/t.html#testscr">testscr</a> <a href="../files/_StataProgramFiles_Section 2.do.html#281">avginc</a>)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Regress test scores on student teacher ratio</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="284" title="reg"><!-- -->
284</a> <a onclick='toggle("cmd_-487013994");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a></span>
<div id="cmd_-487013994" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Regress test scores on student teacher ratio
reg testscr str</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="285" title="comment"><!-- -->
285</a> <a onclick='toggle("cmd_93563748");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* For every additional student per teacher, the test score is expected to decrease by 2.28
* This is rejected at p =0.001, p=0.01, p=0.05
* Adj R^2 is 0.05 so this model is not very good.
* Standard error of regression is SQRT(MSE) = 18.581</span>
<div id="cmd_93563748" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* For every additional student per teacher, the test score is expected to decrease by 2.28
* This is rejected at p =0.001, p=0.01, p=0.05
* Adj R^2 is 0.05 so this model is not very good.
* Standard error of regression is SQRT(MSE) = 18.581</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* For every additional student per teacher, the test score is expected to decrease by 2.28
* This is rejected at p =0.001, p=0.01, p=0.05
* Adj R^2 is 0.05 so this model is not very good.
* Standard error of regression is SQRT(MSE) = 18.581</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Regress test score on class size // Generate class size variable and estimate regression equation // It was assumed here that class size=total enrolment/teachers</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="293" title="g"><!-- -->
293</a> <a onclick='toggle("cmd_1910541553");' title="g">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">g</span>
<span class="cmdparameters"><a href="../tokens/s.html#size">size</a> = <a href="../files/_StataProgramFiles_Section 2.do.html#293">enrl_tot</a>/<a href="../files/_StataProgramFiles_Section 2.do.html#293">teachers</a></span>
<div id="cmd_1910541553" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 3. Regress test score on class size
// Generate class size variable and estimate regression equation
// It was assumed here that class size=total enrolment/teachers
g size = enrl_tot/teachers</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">g</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#size">size</a> = <a href="../files/_StataProgramFiles_Section 2.do.html#293">enrl_tot</a>/<a href="../files/_StataProgramFiles_Section 2.do.html#293">teachers</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="294" title="reg"><!-- -->
294</a> <a onclick='toggle("cmd_482608710");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#size">size</a></span>
<div id="cmd_482608710" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">reg testscr size</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#size">size</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> * The predicted average test score for a class of 22 students is * score = 698.933 - 2.279808*22</div></td>
</tr>
<tr class="cmd_systemcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="297" title="di"><!-- -->
297</a> <a onclick='toggle("cmd_78589838");' title="di">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">di</span>
<span class="cmdparameters"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/_.html#_cons">_cons</a>] + <a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/s.html#size">size</a>]*22</span>
<div id="cmd_78589838" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* The predicted average test score for a class of 22 students is
* score = 698.933 - 2.279808*22
di _b[_cons] + _b[size]*22</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">di</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/_.html#_cons">_cons</a>] + <a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/s.html#size">size</a>]*22</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 4. Sample average</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="300" title="mean"><!-- -->
300</a> <a onclick='toggle("cmd_1446007337");' title="mean">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">mean</span>
<span class="cmdparameters"><a href="../tokens/s.html#size">size</a></span>
<div id="cmd_1446007337" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 4. Sample average
mean size</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">mean</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#size">size</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="301" title="mean"><!-- -->
301</a> <a onclick='toggle("cmd_-793964123");' title="mean">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">mean</span>
<span class="cmdparameters"><a href="../tokens/t.html#testscr">testscr</a></span>
<div id="cmd_-793964123" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">mean testscr</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">mean</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#testscr">testscr</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="302" title="comment"><!-- -->
302</a> <a onclick='toggle("cmd_1263700301");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* Note: The sample average of class size is computed here as 19.64, not 21.4 as stated in the task sheet.</span>
<div id="cmd_1263700301" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* Note: The sample average of class size is computed here as 19.64, not 21.4 as stated in the task sheet.</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">* Note: The sample average of class size is computed here as 19.64, not 21.4 as stated in the task sheet.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="305" title="comment"><!-- -->
305</a> <a onclick='toggle("cmd_1146786984");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_1146786984" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="308" title="comment"><!-- -->
308</a> <a onclick='toggle("cmd_-1272023326");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 4 {US Current Population Survey Data}</span>
<div id="cmd_-1272023326" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Exercise 4 {US Current Population Survey Data}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 4 {US Current Population Survey Data}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="312" title="webuse"><!-- -->
312</a> <a onclick='toggle("cmd_-1632662320");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../tokens/c.html#cpso8">cpso8</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"> <a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_-1632662320" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "cpso8.dta", clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../tokens/c.html#cpso8">cpso8</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Estimate model</div></td>
</tr>
<tr class="cmd_estcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="315" title="reg"><!-- -->
315</a> <a onclick='toggle("cmd_34876722");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/a.html#ahe">ahe</a> <a href="../tokens/a.html#age">age</a></span>
<div id="cmd_34876722" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Estimate model
reg ahe age</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/a.html#ahe">ahe</a> <a href="../tokens/a.html#age">age</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="317" title="comment"><!-- -->
317</a> <a onclick='toggle("cmd_-1965523019");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// (a)(b)
// The age coefficient is statistically significant, and the magnitude of the coefficient seems economically significant.
// However the model itself only explains 3% of the variation (R^2 = 0.03)</span>
<div id="cmd_-1965523019" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// (a)(b)
// The age coefficient is statistically significant, and the magnitude of the coefficient seems economically significant.
// However the model itself only explains 3% of the variation (R^2 = 0.03)</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// (a)(b)
// The age coefficient is statistically significant, and the magnitude of the coefficient seems economically significant.
// However the model itself only explains 3% of the variation (R^2 = 0.03)</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // (c) Construct confidence interval</div></td>
</tr>
<tr class="cmd_systemcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="322" title="di"><!-- -->
322</a> <a onclick='toggle("cmd_1066717994");' title="di">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">di</span>
<span class="cmdparameters"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>] - 1.96 * <a href="../tokens/_.html#_se">_se</a>[<a href="../tokens/a.html#age">age</a>] // <a href="../files/_StataProgramFiles_Section 2.do.html#322">Lower</a> <a href="../tokens/l.html#limit">limit</a> <a href="../tokens/o.html#of">of</a> <a href="../tokens/c.html#confidence">confidence</a> <a href="../tokens/i.html#interval">interval</a></span>
<div id="cmd_1066717994" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// (c) Construct confidence interval
di _b[age] - 1.96 * _se[age] // Lower limit of confidence interval</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">di</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>] - 1.96 * <a href="../tokens/_.html#_se">_se</a>[<a href="../tokens/a.html#age">age</a>] // <a href="../files/_StataProgramFiles_Section 2.do.html#322">Lower</a> <a href="../tokens/l.html#limit">limit</a> <a href="../tokens/o.html#of">of</a> <a href="../tokens/c.html#confidence">confidence</a> <a href="../tokens/i.html#interval">interval</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_systemcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="323" title="di"><!-- -->
323</a> <a onclick='toggle("cmd_-1921723261");' title="di">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">di</span>
<span class="cmdparameters"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>] + 1.96 * <a href="../tokens/_.html#_se">_se</a>[<a href="../tokens/a.html#age">age</a>] // <a href="../files/_StataProgramFiles_Section 2.do.html#323">Upper</a> <a href="../tokens/l.html#limit">limit</a> <a href="../tokens/o.html#of">of</a> <a href="../tokens/c.html#confidence">confidence</a> <a href="../tokens/i.html#interval">interval</a></span>
<div id="cmd_-1921723261" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">di _b[age] + 1.96 * _se[age] // Upper limit of confidence interval</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">di</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>] + 1.96 * <a href="../tokens/_.html#_se">_se</a>[<a href="../tokens/a.html#age">age</a>] // <a href="../files/_StataProgramFiles_Section 2.do.html#323">Upper</a> <a href="../tokens/l.html#limit">limit</a> <a href="../tokens/o.html#of">of</a> <a href="../tokens/c.html#confidence">confidence</a> <a href="../tokens/i.html#interval">interval</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Predict earnings // 26 year old worker</div></td>
</tr>
<tr class="cmd_systemcmd rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="327" title="di"><!-- -->
327</a> <a onclick='toggle("cmd_-409931380");' title="di">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">di</span>
<span class="cmdparameters"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/_.html#_cons">_cons</a>] + <a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>]*26</span>
<div id="cmd_-409931380" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Predict earnings
// 26 year old worker
di _b[_cons] + _b[age]*26</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">di</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/_.html#_cons">_cons</a>] + <a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>]*26</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 30 year old worker</div></td>
</tr>
<tr class="cmd_systemcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="329" title="di"><!-- -->
329</a> <a onclick='toggle("cmd_-820671716");' title="di">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">di</span>
<span class="cmdparameters"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/_.html#_cons">_cons</a>] + <a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>]*30</span>
<div id="cmd_-820671716" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 30 year old worker
di _b[_cons] + _b[age]*30</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">di</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/_.html#_cons">_cons</a>] + <a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/a.html#age">age</a>]*30</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="332" title="comment"><!-- -->
332</a> <a onclick='toggle("cmd_483541460");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">**********************************************</span>
<div id="cmd_483541460" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">**********************************************</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="335" title="comment"><!-- -->
335</a> <a onclick='toggle("cmd_-436438404");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">// Exercise 5 {California Schools Data}</span>
<div id="cmd_-436438404" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// Exercise 5 {California Schools Data}</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">comment</td>
<td class="colLast">// Exercise 5 {California Schools Data}</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> **********************************************</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="339" title="webuse"><!-- -->
339</a> <a onclick='toggle("cmd_701266786");' title="webuse">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">webuse</span>
<span class="cmdparameters">"<a href="../tokens/c.html#caschool">caschool</a>.<a href="../tokens/d.html#dta">dta</a>"</span>
, <span class="cmdoptions"><a href="../tokens/c.html#clear">clear</a></span>
<div id="cmd_701266786" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">**********************************************
webuse "caschool.dta",clear</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">webuse</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"><a href="../tokens/c.html#clear">clear</a></td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast">"<a href="../tokens/c.html#caschool">caschool</a>.<a href="../tokens/d.html#dta">dta</a>"</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 1. Run the regression</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="341" title="reg"><!-- -->
341</a> <a onclick='toggle("cmd_277448953");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a> // <a href="../tokens/m.html#Model">Model</a> 1</span>
<div id="cmd_277448953" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 1. Run the regression
reg testscr str // Model 1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a> // <a href="../tokens/m.html#Model">Model</a> 1</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="342" title="est"><!-- -->
342</a> <a onclick='toggle("cmd_736410562");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#model1">model1</a></span>
<div id="cmd_736410562" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store model1</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#model1">model1</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 2. Regress Model 2</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="345" title="reg"><!-- -->
345</a> <a onclick='toggle("cmd_-1331254254");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a> <a href="../tokens/e.html#el_pct">el_pct</a> // <a href="../tokens/m.html#Model">Model</a> 2</span>
<div id="cmd_-1331254254" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 2. Regress Model 2
reg testscr str el_pct // Model 2</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a> <a href="../tokens/e.html#el_pct">el_pct</a> // <a href="../tokens/m.html#Model">Model</a> 2</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> * Coefficient of "str" was -2.279808. It is now -1.101296.</div></td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="347" title="est"><!-- -->
347</a> <a onclick='toggle("cmd_2024548086");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#model2">model2</a></span>
<div id="cmd_2024548086" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* Coefficient of "str" was -2.279808. It is now -1.101296.
est store model2</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#model2">model2</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 3. Regress Model 3</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="350" title="reg"><!-- -->
350</a> <a onclick='toggle("cmd_398909032");' title="reg">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">reg</span>
<span class="cmdparameters"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a> <a href="../tokens/e.html#el_pct">el_pct</a> <a href="../tokens/e.html#expn_stu">expn_stu</a> //<a href="../tokens/m.html#Model">Model</a> 3</span>
<div id="cmd_398909032" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 3. Regress Model 3
reg testscr str el_pct expn_stu //Model 3</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">reg</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#testscr">testscr</a> <a href="../tokens/s.html#str">str</a> <a href="../tokens/e.html#el_pct">el_pct</a> <a href="../tokens/e.html#expn_stu">expn_stu</a> //<a href="../tokens/m.html#Model">Model</a> 3</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_other rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="351" title="est"><!-- -->
351</a> <a onclick='toggle("cmd_1005014101");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#model3">model3</a></span>
<div id="cmd_1005014101" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">est store model3</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/s.html#store">store</a> <a href="../tokens/m.html#model3">model3</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 4. Summarise the coefficients and standard errors</div></td>
</tr>
<tr class="cmd_other altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="354" title="est"><!-- -->
354</a> <a onclick='toggle("cmd_-1138716127");' title="est">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">est</span>
<span class="cmdparameters"><a href="../tokens/t.html#table">table</a> <a href="../tokens/m.html#model1">model1</a> <a href="../tokens/m.html#model2">model2</a> <a href="../tokens/m.html#model3">model3</a></span>
, <span class="cmdoptions"> <a href="../tokens/s.html#se">se</a> <a href="../tokens/t.html#title">title(</a>"<a href="../tokens/t.html#Test">Test</a> <a href="../tokens/s.html#scores">scores</a>")</span>
<div id="cmd_-1138716127" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 4. Summarise the coefficients and standard errors
est table model1 model2 model3, se title("Test scores")</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">command</td>
<td class="colLast">est</td>
</tr>
<tr class="altColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="rowColor">
<td class="colFirst">options</td>
<td class="colLast"> <a href="../tokens/s.html#se">se</a> <a href="../tokens/t.html#title">title(</a>"<a href="../tokens/t.html#Test">Test</a> <a href="../tokens/s.html#scores">scores</a>")</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/t.html#table">table</a> <a href="../tokens/m.html#model1">model1</a> <a href="../tokens/m.html#model2">model2</a> <a href="../tokens/m.html#model3">model3</a></td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr class="cmd_comment rowColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="355" title="comment"><!-- -->
355</a> <a onclick='toggle("cmd_19747181");' title="comment">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcomment">* The best way to summarise the outputs in a way that makes them easily comparable is to tabulate the estimates.</span>
<div id="cmd_19747181" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">* The best way to summarise the outputs in a way that makes them easily comparable is to tabulate the estimates.</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="rowColor">
<td class="colFirst">comment</td>
<td class="colLast">* The best way to summarise the outputs in a way that makes them easily comparable is to tabulate the estimates.</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
<tr>
<td class="colFirst" style="width:30px"></td>
<td class="colLast" style="padding-left:0em"><div class="cmd_comment"> // 5. Test hypothesis</div></td>
</tr>
<tr class="cmd_estcmd altColor">
<td class="colFirst" style="width:30px;text-align:right;">
<a name="358" title="test"><!-- -->
358</a> <a onclick='toggle("cmd_-497995407");' title="test">[+]</a>
</td>
<td class="colLast" style="padding-left:0em">
<span class="cmdcommand">test</span>
<span class="cmdparameters"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/s.html#str">str</a>]=<a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/e.html#expn_stu">expn_stu</a>]=0</span>
<div id="cmd_-497995407" style="display:none">
<ul class="blockList">
<li class="blockList">
<pre class="wrap">// 5. Test hypothesis
test _b[str]=_b[expn_stu]=0</pre>
</li>
</ul>
<table class="packageSummary" border="0" cellpadding="3" cellspacing="0" summary="Properties">
<caption><span><a name="properties"><!-- --></a>All properties</span><span class="tabEnd"> </span></caption>
<tr>
<th class="colFirst" scope="col">key</th>
<th class="colLast" scope="col">content</th>
</tr>
<tbody>
<tr class="altColor">
<td class="colFirst">command</td>
<td class="colLast">test</td>
</tr>
<tr class="rowColor">
<td class="colFirst">indent</td>
<td class="colLast">0</td>
</tr>
<tr class="altColor">
<td class="colFirst">parameters</td>
<td class="colLast"><a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/s.html#str">str</a>]=<a href="../tokens/_.html#_b">_b</a>[<a href="../tokens/e.html#expn_stu">expn_stu</a>]=0</td>
</tr>
</tbody>
</table>
<br>
</br>
</div>
</td>
</tr>
</table>
</li>
</ul>
<a name="content"><!-- --></a>
<!-- ========== CONTENT =========== -->
<ul class="blockList">
<li class="blockList">
<ul class="blockList">
<li class="blockList">
<h3>Content</h3>
<pre>
********************************************************************************
// SECTION 2 REGRESSION 1
********************************************************************************
// Extended Exercise 1 {Savings in Singapore}
**********************************************
webuse set http://www.ncer.edu.au/stata-resources/data/Honours/
webuse "savings.dta",clear
g dates = tq(1975q1)+_n-1
tsset dates, quarterly
// 1. Generate required variables
qui g dsav = (income-consump)-(L4.income-L4.consump)
qui g dincome = income-L4.income
qui g real = interest-100*log(price/L4.price)
qui g dreal = real-L4.real
// 2. Estimate using OLS
reg dsav dincome dreal
* check for autocorrelation
estat dwatson
* check coefficients against expectations.
* We expect savings to be positively correlated with income. b1 > 0.
* We expect savings to be positively correlated with interest. b2 >0.
* check statistics.
* R^2 and adjR^2 show above 80% of variation in savings is explained by the model.
* F statistic is highly significant
* DW test statistic indicates likely positive autocorrelation.
// 5. (a) Plot residuals
predict resid, residuals
scatter resid dates
*The scatter plot dips from 1985 to 1993(?).
*Have a look at fitted line against actual line
predict fitted, xb
twoway (tsline fitted) (tsline dsav)
// 5. (b) test normality of residuals
sktest resid
*sktest null hypothesis: variable is normal
// 5. (c) test second order autocorrelation (Breusch-Godfrey test)
estat bgodfrey, lags(2)
* H0: No autocorrelation
* Second order correlation - yes
// 5. (d) White's test for heteroskedasticity
imtest, white
* H0: homoskedastic
* Heteroskedastic - no
**********************************************
// Extended Exercise 2 {Demand for Money in Kenya}
**********************************************
webuse "kenya.dta", clear
//set time variable
rename obs dates
tsset dates, yearly
// Generate required variables
qui g lm2cpi = log(m2/cpi)
qui g dlm = D1.lm2cpi
qui g lngdpcpi = log(ngdp/cpi)
qui g dly = D1.lngdpcpi
qui g interestpc = interest/100
qui g di = D1.interestpc
// 1. Regress
reg dlm dly di
// 2. Check OLS assumptions
predict double resid,residuals
tsline resid
sktest resid // Check normality
estat bgodfrey, lags(1) // Check autocorrelation
imtest, white // Check heteroskedasticity
// 3. Other tests
test dly
test (dly=1) (di=0)
**********************************************
// Extended Exercise 3 {Inflation Hikes in Kenya}
**********************************************
// 1. Plot inflation
tsline inf
// 2. Estimate the inflation model
qui g growth = D1.lngdpcpi
qui g lerate = log(erate)
qui g erets = D1.lerate
reg inf growth erets
predict double e, residuals
tsline e
// 3. Estimate inflation model with structural break
qui g dum = (1992<=dates & dates<=1994) // This creates a dummy variable for 1992 < dates < 1994
reg inf growth erets dum
predict double e_dum,residuals
tsline e_dum
**********************************************
// Extended Exercise 4 {Threshold Model of US Growth}
**********************************************
webuse "thresh1.dta",clear
rename obs year
tsset year, yearly
// The "growth" and "inf" variables provided are incorrect.
// Drop wrong variables
drop growth inf
// Create required variables
qui g lyus = log(y_us)
qui g growth = 100*D1.lyus
qui g lpus = log(p_us)
qui g inf = 100*D1.lpus
// What is the value of k? First, identify appropriate value of k.
// Estimate the model using all feasible values for k (k=1,...,9), and use k that gives the lowest RSS.
g d1 = (inf>1) // k=1
g d2 = (inf>2) // k=2
g d3 = (inf>3) // k=3
g d4 = (inf>4) // k=4
g d5 = (inf>5) // k=5
g d6 = (inf>6) // k=6
g d7 = (inf>7) // k=7
g d8 = (inf>8) // k=8
g d9 = (inf>9) // k=9
g dinf1 = d1* (inf-1)
g dinf2 = d2* (inf-2)
g dinf3 = d3* (inf-3)
g dinf4 = d4* (inf-4)
g dinf5 = d5* (inf-5)
g dinf6 = d6* (inf-6)
g dinf7 = d7* (inf-7)
g dinf8 = d8* (inf-8)
g dinf9 = d9* (inf-9)
reg growth inf dinf1 // k=1
reg growth inf dinf2 // k=2
reg growth inf dinf3 // k=3
reg growth inf dinf4 // k=4
reg growth inf dinf5 // k=5
reg growth inf dinf6 // k=6
reg growth inf dinf7 // k=7
reg growth inf dinf8 // k=8
reg growth inf dinf9 // k=9
// The RSS from each of the estimated models correspond to the values in Table 1 in the question
// k=7 has the lowest RSS.
// The appropriate model is the one with k=7
********************************************************************************
********************************************************************************
// Exercises
********************************************************************************
********************************************************************************
// Exercise 1 {US Population Survey Data}
**********************************************
webuse "cpso8.dta", clear
// 1. Estimate the model
reg ahe female
* The coefficient of "female" is significant, therefore the wage differential is significant
// 2. Estimate model with additional factors
reg ahe female bachelor age
* The coefficient of "female" is still significant, and has increased in magnitude.
* The other factors are also significant.
**********************************************
// Exercise 2 {CAPM}
**********************************************
webuse "capm.dta", clear
qui g dates = tm(1998m1)+_n-1
tsset dates, monthly
* Note that the dates only go until December 2007, not December 2008
// Generate the market risk premium variable
g mrp = mkt - rkfree
// Generate firm risk premium
g msftpr = msft - rkfree
g gepr = ge - rkfree
g gmpr = gm - rkfree
g ibmpr = ibm - rkfree
g dispr = dis - rkfree
g xompr = xom - rkfree
// 1. Estimate the CAPM model for each firm
qui reg msftpr mrp // Microsoft
est store msft // -est- is an abbreviation of -estimates-
qui reg gepr mrp // GE
est store ge
qui reg gmpr mrp // GM
est store gm
qui reg ibmpr mrp // IBM
est store ibm
qui reg dispr mrp // Disney
est store dis
qui reg xompr mrp // Exxon-Mobile
est store xom
// 2. Check intercept parameter
// Display estimates
est table msft ge gm ibm dis xom, star title("CAPM Estimates")
// The -star- option uses stars to denote significance levels.
// See http://www.stata.com/manuals13/restimatestable.pdf
* None of the intercept parameters are significant, therefore finance theory holds
// 3. Microsoft
// (a)
qui reg msftpr mrp
predict pr_msftpr
tsline msftpr pr_msftpr
// (b)
test _b[mrp]=1
* p-value = 0.0241
// (c)
// Since the estimate for beta is larger than 1, the p-value for the one-sided test is simply half of the p-value in part (b)
* p-value = 0.0241/2
**********************************************
// Exercise 3 {California School Districts Data}
**********************************************
webuse "caschool.dta", clear
// 1. Draw scatterplot and regression line
twoway (scatter testscr avginc) (lfit testscr avginc)
// 2. Regress test scores on student teacher ratio
reg testscr str
* For every additional student per teacher, the test score is expected to decrease by 2.28
* This is rejected at p =0.001, p=0.01, p=0.05
* Adj R^2 is 0.05 so this model is not very good.
* Standard error of regression is SQRT(MSE) = 18.581
// 3. Regress test score on class size
// Generate class size variable and estimate regression equation
// It was assumed here that class size=total enrolment/teachers
g size = enrl_tot/teachers
reg testscr size
* The predicted average test score for a class of 22 students is
* score = 698.933 - 2.279808*22
di _b[_cons] + _b[size]*22
// 4. Sample average
mean size
mean testscr
* Note: The sample average of class size is computed here as 19.64, not 21.4 as stated in the task sheet.
**********************************************
// Exercise 4 {US Current Population Survey Data}
**********************************************
webuse "cpso8.dta", clear
// 1. Estimate model
reg ahe age
// (a)(b)
// The age coefficient is statistically significant, and the magnitude of the coefficient seems economically significant.
// However the model itself only explains 3% of the variation (R^2 = 0.03)
// (c) Construct confidence interval
di _b[age] - 1.96 * _se[age] // Lower limit of confidence interval
di _b[age] + 1.96 * _se[age] // Upper limit of confidence interval
// 2. Predict earnings
// 26 year old worker
di _b[_cons] + _b[age]*26
// 30 year old worker
di _b[_cons] + _b[age]*30
**********************************************
// Exercise 5 {California Schools Data}
**********************************************
webuse "caschool.dta",clear
// 1. Run the regression
reg testscr str // Model 1
est store model1
// 2. Regress Model 2
reg testscr str el_pct // Model 2
* Coefficient of "str" was -2.279808. It is now -1.101296.
est store model2
// 3. Regress Model 3
reg testscr str el_pct expn_stu //Model 3
est store model3
// 4. Summarise the coefficients and standard errors
est table model1 model2 model3, se title("Test scores")
* The best way to summarise the outputs in a way that makes them easily comparable is to tabulate the estimates.
// 5. Test hypothesis
test _b[str]=_b[expn_stu]=0
* or -test str expn_stu-
* Both methods produce the same result, which is that
* the null hypothesis of both coefficients being zero is rejected,
* i.e. at least one of the two is significantly different from zero.
</pre>
</li>
</ul>
</li>
</ul>
<ul class="blockList">
<li class="blockList">
<div class="summary">
<ul class="blockList">
<li class="blockList">
<!-- ========== TOKENS =========== -->
<ul class="blockList">
<li class="blockList"><a name="method_summary">
<!-- -->
</a>
<h3>Tokens</h3>
<span style="font-size: 22pt;"><a class="tokens" href="../tokens/s.html#Section">Section</a></span>
<span style="font-size: 22pt;"><a class="tokens" href="../tokens/s.html#Section_do">Section do</a></span>
</li>
</ul>
</li>
</ul>
</div>
</li>
</ul>
</div>
<!-- ========= END OF CLASS DATA ========= -->
<!-- ========= START OF BOTTOM NAVBAR ========= -->
<div class="bottomNav"><a name="navbar_bottom">
<!-- -->
</a><a href="#skip-navbar_bottom" title="Skip navigation links"></a><a name="navbar_bottom_firstrow">
<!-- -->
</a>
<ul class="navList" title="Navigation">
<li ><a href="../overview/overview-summary.html" target="classFrame">Overview</a></li>
<li ><a href="../variables/variables-summary.html" target="classFrame">Variables</a></li>
<li class="navBarCell1Rev"><a href="../files/files-summary.html" target="classFrame">Files</a></li>
<li ><a href="../tokens/tokens-summary.html" target="classFrame">Tokens</a></li>
<!-- <li><a href="../flows/flow-summary.html" target="classFrame">Flows</a></li> -->
<li ><a href="../overview/help-doc.html" target="classFrame">Help</a></li>
<!-- <li class="navBarCell1Rev">Active</li> -->
</ul>
</div>
<div class="subNav">
<ul class="navList">
<li>
<a href="../files/_StataProgramFiles_Section 1.do.html" title="/StataProgramFiles/Section 1.do">Prev</a>
</li>
<li>
<a href="../files/_StataProgramFiles_Section 3.do.html" title="/StataProgramFiles/Section 3.do" >Next</a>
</li>
</ul>
<ul class="navList">
<li><a href="../index.html?files/_StataProgramFiles_Section 2.do.html" target="_top">Frames</a></li>
<li><a href="../files/_StataProgramFiles_Section 2.do.html" target="_top">No Frames</a></li>
</ul>
<a name="skip-navbar_bottom">
<!-- -->
</a></div>
<!-- ========= END OF BOTTOM NAVBAR ========= -->
</body>
</html>