Regression on residuals > Interpret ?

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ppoulimen
Posts: 6
Joined: Thu Feb 01, 2018 12:03 pm

Regression on residuals > Interpret ?

Postby ppoulimen » Fri Feb 02, 2018 5:28 am

Hi all,
I am trying to understand the following scenario

Step 1 :
I estimate the following equation with Least Squares (based on excel file data)
Y = bo + b1 X1 + b2 X2 ==>
Y = 12.354268 + 0.146640 X1 -0.414723 X2

Step 2 :
I estimate the equation
X1 = c0 + c1 X2 ==>
X1 = 29.4521 + -3.5499 X2

I keep the resids in a variable resids

Step 3 :
I estimate the equation
Y = d0 + d1 resids ==>
Y = 15.33727 + 0.14664 resids

Why the coefficient b2 = d1 ?

Thanks in advance

ppoulimen
Posts: 6
Joined: Thu Feb 01, 2018 12:03 pm

Re: Regression on residuals > Interpret ?

Postby ppoulimen » Sun Feb 04, 2018 12:19 am

Anybody please ?


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