Squared or cubic explanatory terms

For questions of any nature based on EViews 5 or earlier versions of EViews.

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Squared or cubic explanatory terms

Postby shoehorn » Mon Sep 26, 2011 8:12 am


Could I use Eviews to run a least squares model in the form of y = b + cx + dx^2 ?

I'm wondering if Eviews uses this http://www.efunda.com/math/leastsquares/lstsqr2dcurve.cfm method automatically, or do i have to do something differently to regress squared or cubic terms?

I type ls y c x x^2 to regress the equation currently.

I'm using eviews 5.0.

Thank you

Non-normality and collinearity are NOT problems!
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Re: Squared or cubic explanatory terms

Postby startz » Mon Sep 26, 2011 8:19 am

EViews uses the method described. You've got it right.

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