Equation view ommitted-variable-test: mistake in the reporting
Posted: Thu Aug 31, 2017 5:19 am
Dear Eviews team,
I use Eviews 9.5 Dec 2016 built.
There is a mistake in the reporting of the equation view for the omitted variable test.
Let X be the variable to be tested for omission. The report view would say:
But it should be:
(Note: the corresponding line in the view for the redundant-variable-test is correct)
See example program below.
Best, mamo
I use Eviews 9.5 Dec 2016 built.
There is a mistake in the reporting of the equation view for the omitted variable test.
Let X be the variable to be tested for omission. The report view would say:
Null hypothesis: X are jointly significant
But it should be:
Null hypothesis: X are not jointly significant
(Note: the corresponding line in the view for the redundant-variable-test is correct)
See example program below.
Best, mamo
Code: Select all
wfcreate a 2000 2016
series x1= nrnd
series x2= nrnd
series y=2+0.5*x1-2*x2+nrnd
equation eq1.ls y c x1
equation eq2.ls y c x1 x2
2nd line in the following view of the omitted variable test is wrong
eq1.testadd x2
'2nd line in the following view of the redundant variable test is ok
eq2.testdrop x2