EViews_Illustrated_Chapter_3

# EViews_Illustrated_Chapter_3 - EViews Illustrated for...

This preview shows pages 1–4. Sign up to view the full content.

EViews Illustrated for Version 7 Richard Startz University of Washington

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Chapter 3. Getting the Most from Least Squares Regression is the king of econometric tools. Regression’s job is to find numerical values for theoretical parameters. In the simplest case this means telling us the slope and intercept of a line drawn through two dimensional data. But EViews tells us lots more than just slope and intercept. In this chapter you’ll see how easy it is to get parameter estimates plus a large variety of auxiliary statistics. We begin our exploration of EViews’ regression tool with a quick look back at the NYSE vol- ume data that we first saw in the opening chapter. Then we’ll talk about how to instruct EViews to estimate a regression and how to read the information about each estimated coef- ficient from the EViews output. In addition to regression coefficients, EViews provides a great deal of summary information about each estimated equation. We’ll walk through these items as well. We take a look at EViews’ features for testing hypotheses about regres- sion coefficients and conclude with a quick look at some of EViews’ most important views of regression results. Regression is a big subject. This chapter focuses on EViews’ most important regression fea- tures. We postpone until later chapters various issues, including forecasting ( Chapter 8, “Forecasting” ), serial correlation ( Chapter 13, “Serial Correlation—Friend or Foe?” ), and heteroskedasticity and nonlinear regression ( Chapter 14, “A Taste of Advanced Estima- tion” ). A First Regression Returning to our earlier examination of trend growth in the volume of stock trades, we start with a scatter diagram of the logarithm of volume plotted against time.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern