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Example 2.3: CEO Salary and Return On Equity: Chapter 2 - The Simple Regression Model

Stata Textbook Examples Introductory Econometrics: A Modern Approach by Jeffrey M. Wooldridge (1st & 2d eds.) Chapter 2 - The Simple Regression Model Example 2.3: CEO Salary and Return on Equity use http://fmwww.bc.edu/ec-p/data/wooldridge/ceosal1 summ salary roe Variable | Obs Mean Std. Dev. Min Max ---------+----------------------------------------------------- salary | 209 1281.12 1372.345 223 14822 roe | 209 17.18421 8.518509 .5 56.3 reg salary roe Source | SS df MS Number of obs = 209 ---------+------------------------------ F( 1, 207) = 2.77 Model | 5166419.04 1 5166419.04 Prob > F = 0.0978 Residual | 386566563 207 1867471.32 R-squared = 0.0132 ---------+------------------------------ Adj R-squared = 0.0084 Total | 391732982 208 1883331.64 Root MSE = 1366.6 ------------------------------------------------------------------------------ salary | Coef. Std. Err. t P>|t| [95% Conf. Interval] ---------+-------------------------------------------------------------------- roe | 18.50119 11.12325 1.663 0.098 -3.428195 40.43057 _cons | 963.1913 213.2403 4.517 0.000 542.7902 1383.592 ------------------------------------------------------------------------------ Salary for ROE = 0 display _b[roe]*0+_b[_cons] 963.19134 Salary for ROE = 30 display _b[roe]*30+_b[_cons] 1518.2269 Example 2.4: Wage and Education use http://fmwww.bc.edu/ec-p/data/wooldridge/wage1 summ wage Variable | Obs Mean Std. Dev. Min Max ---------+----------------------------------------------------- wage | 526 5.896103 3.693086 .53 24.98 reg wage educ Source | SS df MS Number of obs = 526 ---------+------------------------------ F( 1, 524) = 103.36 Model | 1179.73204 1 1179.73204 Prob > F = 0.0000 Residual | 5980.68225 524 11.4135158 R-squared = 0.1648 ---------+------------------------------ Adj R-squared = 0.1632 Total | 7160.41429 525 13.6388844 Root MSE = 3.3784 ------------------------------------------------------------------------------ wage | Coef. Std. Err. t P>|t| [95% Conf. Interval] ---------+-------------------------------------------------------------------- educ | .5413593 .053248 10.167 0.000 .4367534 .6459651 _cons | -.9048516 .6849678 -1.321 0.187 -2.250472 .4407687 ------------------------------------------------------------------------------ Wage for educ = 0 display _b[educ]*0+_b[_cons] -.90485161 Wage for educ = 8 display _b[educ]*8+_b[_cons] 3.4260224 Return to 4 years education display _b[educ]*4 2.165437 Example 2.5: Voting Outcomes and Campaign Expenditures use http://fmwww.bc.edu/ec-p/data/wooldridge/vote1 reg voteA shareA Source | SS df MS Number of obs = 173 ---------+------------------------------ F( 1, 171) = 1017.70 Model | 41486.4749 1 41486.4749 Prob > F = 0.0000 Residual | 6970.77363 171 40.7647581 R-squared = 0.8561 ---------+------------------------------ Adj R-squared = 0.8553 Total | 48457.2486 172 281.728189

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89 views3 pages

Example 2.3: CEO Salary and Return On Equity: Chapter 2 - The Simple Regression Model

Stata Textbook Examples Introductory Econometrics: A Modern Approach by Jeffrey M. Wooldridge (1st & 2d eds.) Chapter 2 - The Simple Regression Model Example 2.3: CEO Salary and Return on Equity use http://fmwww.bc.edu/ec-p/data/wooldridge/ceosal1 summ salary roe Variable | Obs Mean Std. Dev. Min Max ---------+----------------------------------------------------- salary | 209 1281.12 1372.345 223 14822 roe | 209 17.18421 8.518509 .5 56.3 reg salary roe Source | SS df MS Number of obs = 209 ---------+------------------------------ F( 1, 207) = 2.77 Model | 5166419.04 1 5166419.04 Prob > F = 0.0978 Residual | 386566563 207 1867471.32 R-squared = 0.0132 ---------+------------------------------ Adj R-squared = 0.0084 Total | 391732982 208 1883331.64 Root MSE = 1366.6 ------------------------------------------------------------------------------ salary | Coef. Std. Err. t P>|t| [95% Conf. Interval] ---------+-------------------------------------------------------------------- roe | 18.50119 11.12325 1.663 0.098 -3.428195 40.43057 _cons | 963.1913 213.2403 4.517 0.000 542.7902 1383.592 ------------------------------------------------------------------------------ Salary for ROE = 0 display _b[roe]*0+_b[_cons] 963.19134 Salary for ROE = 30 display _b[roe]*30+_b[_cons] 1518.2269 Example 2.4: Wage and Education use http://fmwww.bc.edu/ec-p/data/wooldridge/wage1 summ wage Variable | Obs Mean Std. Dev. Min Max ---------+----------------------------------------------------- wage | 526 5.896103 3.693086 .53 24.98 reg wage educ Source | SS df MS Number of obs = 526 ---------+------------------------------ F( 1, 524) = 103.36 Model | 1179.73204 1 1179.73204 Prob > F = 0.0000 Residual | 5980.68225 524 11.4135158 R-squared = 0.1648 ---------+------------------------------ Adj R-squared = 0.1632 Total | 7160.41429 525 13.6388844 Root MSE = 3.3784 ------------------------------------------------------------------------------ wage | Coef. Std. Err. t P>|t| [95% Conf. Interval] ---------+-------------------------------------------------------------------- educ | .5413593 .053248 10.167 0.000 .4367534 .6459651 _cons | -.9048516 .6849678 -1.321 0.187 -2.250472 .4407687 ------------------------------------------------------------------------------ Wage for educ = 0 display _b[educ]*0+_b[_cons] -.90485161 Wage for educ = 8 display _b[educ]*8+_b[_cons] 3.4260224 Return to 4 years education display _b[educ]*4 2.165437 Example 2.5: Voting Outcomes and Campaign Expenditures use http://fmwww.bc.edu/ec-p/data/wooldridge/vote1 reg voteA shareA Source | SS df MS Number of obs = 173 ---------+------------------------------ F( 1, 171) = 1017.70 Model | 41486.4749 1 41486.4749 Prob > F = 0.0000 Residual | 6970.77363 171 40.7647581 R-squared = 0.8561 ---------+------------------------------ Adj R-squared = 0.8553 Total | 48457.2486 172 281.728189

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We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 3

Stata Textbook Examples

Introductory Econometrics: A Modern Approach by Jeffrey M.


Wooldridge (1st & 2d eds.)
Chapter 2 - The Simple Regression Model

Example 2.3: CEO Salary and Return on Equity


use http://fmwww.bc.edu/ec-p/data/wooldridge/ceosal1
summ salary roe
Variable |
Obs
Mean
Std. Dev.
Min
Max
---------+----------------------------------------------------salary |
209
1281.12
1372.345
223
14822
roe |
209
17.18421
8.518509
.5
56.3
reg salary roe
Source |
SS
df
MS
209
---------+-----------------------------2.77
Model | 5166419.04
1 5166419.04
0.0978
Residual |
386566563
207 1867471.32
0.0132
---------+-----------------------------0.0084
Total |
391732982
208 1883331.64
1366.6

Number of obs =
F(

1,

207) =

Prob > F

R-squared

Adj R-squared =
Root MSE

----------------------------------------------------------------------------salary |
Coef.
Std. Err.
t
P>|t|
[95% Conf.
Interval]
--------+-------------------------------------------------------------------roe |
18.50119
11.12325
1.663
0.098
-3.428195
40.43057
_cons |
963.1913
213.2403
4.517
0.000
542.7902
1383.592
-----------------------------------------------------------------------------

Salary for ROE = 0


display _b[roe]*0+_b[_cons]
963.19134

Salary for ROE = 30


display _b[roe]*30+_b[_cons]
1518.2269

Example 2.4: Wage and Education


use http://fmwww.bc.edu/ec-p/data/wooldridge/wage1

Pg.1/3

summ wage
Variable |
Obs
Mean
Std. Dev.
Min
Max
---------+----------------------------------------------------wage |
526
5.896103
3.693086
.53
24.98
reg wage educ
Source |
SS
df
MS
Number of obs =
526
---------+-----------------------------F( 1,
524) =
103.36
Model | 1179.73204
1 1179.73204
Prob > F
=
0.0000
Residual | 5980.68225
524 11.4135158
R-squared
=
0.1648
---------+-----------------------------Adj R-squared =
0.1632
Total | 7160.41429
525 13.6388844
Root MSE
=
3.3784
----------------------------------------------------------------------------wage |
Coef.
Std. Err.
t
P>|t|
[95% Conf.
Interval]
--------+-------------------------------------------------------------------educ |
.5413593
.053248
10.167
0.000
.
4367534
.6459651
_cons | -.9048516
.6849678
-1.321
0.187
-2.250472
.4407687
-----------------------------------------------------------------------------

Wage for educ = 0


display _b[educ]*0+_b[_cons]
-.90485161

Wage for educ = 8


display _b[educ]*8+_b[_cons]
3.4260224

Return to 4 years education


display _b[educ]*4
2.165437

Example 2.5: Voting Outcomes and Campaign Expenditures


use http://fmwww.bc.edu/ec-p/data/wooldridge/vote1
reg voteA shareA
Source |
SS
df
MS
173
---------+-----------------------------1017.70
Model | 41486.4749
1 41486.4749
0.0000

Pg.2/3

Number of obs =
F(

1,

Prob > F

171) =
=

Residual | 6970.77363
171 40.7647581
0.8561
---------+-----------------------------0.8553

Total | 48457.2486 172 281.728189

Pg.3/3

R-squared

Adj R-squared =

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