# Question - reciprocal + plotting the estimated model

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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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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