Simple Regression Model

Simple Regression Model: Files

• Lecture: Simple Regression Model.pdf
• Stata program: Simple Regression Model.do
• Data files: ceosal1.dta, wage1.dta
• R script: Simple Regression Model.R
• Data files: ceosal1.csv, wage1.csv

Simple Regression Model: Lecture Topics

• Simple regression terminology
• Examples and interpretation of coefficients
• Population regression function
• Derivation of OLS estimates
• Examples of simple regression – interpretation of results
• Variations, R-squared
• Log transformations - Log-log, log-linear, and linear-log forms
• Gauss Markov assumptions
  • Unbiasedness of OLS estimators
  • Variance of OLS estimators

Simple Regression Model in Stata/R: Topics

• Simple regression
• Prediction after regression
• Goodness-of-fit measure (R-squared)
• Log forms: log-log and log-linear form