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Question - reciprocal + plotting the estimated model

asked 2013-11-30 10:06:28 +0000

KalleKanon gravatar image

Hi there.

Im estimating a modell - y regressand - x e o u regressors.

When ploting y against each of the indep, the y-u plot suggests a reciprocal relationship. The rest more or less linear relationships.

Should I include the reciprocal relationship? And do I do that by genr ru=(1/u) , and estimate with ru instad of u?

Im also wondering how to plot the estimated regression line against the raw-plot in Shazam. Could someone please elaborate?

Thank you in advance for helping out!

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answered 2013-12-03 23:48:05 +0000

MikeP gravatar image

There is no need to transform, OLS will estimate the model and the coefficient will represent the relationship. In some cases you might use the LININV option so elasticities are calculated correctly and the GRAPH option to produce the graphs you need.

ex.

* Linear Regression
ols Igm Fgm Cgm / lininv graph

Use the SHAZAM Wizards or Analytics menu to do this without writing commands if you prefer. See below:


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Asked: 2013-11-30 10:06:28 +0000

Seen: 7,052 times

Last updated: Dec 03 '13