Insufficient numbers of observations and White Test

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ddrebelo
Posts: 2
Joined: Sat Apr 30, 2011 1:13 pm

Insufficient numbers of observations and White Test

Dear all,

I've got this regression function:

xb – xa = α + β1*Di + β2*xb +εi

Where Di is a dummy variable and xb attempts to solve mean regression.
I'm using 29 observations.

When I try to perform a White test using Eviews 7 I get the message: Insufficient number of observations, I'm getting the following message "insufficient number of observations". I've tried to increase the number of observations using 50 but it didn't work.
Any ideas of what the problem might be?

PS (Question 1!)

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 12459
Joined: Tue Sep 16, 2008 5:38 pm

Re: Insufficient numbers of observations and White Test

Could you post the workfile?

priyanshi
Posts: 11
Joined: Wed Jun 19, 2013 12:36 pm

Re: Insufficient numbers of observations and White Test

Hi Gareth,

I am trying to run the following regression. It has two dummy variables apart from 5 time series. I am working on a data set containing 3000 observations.

y c y(-1) y1(-1) d1*y1(-1) d2*y1(-1) y2(-1) d1*y2(-1) d2*y2(-1) y3(-1) d1*y3(-1) d2*y3(-1) y4(-1) d1*y4(-1) d2*y4(-1)

However, I am getting the message "Insufficient number of observations". The workfile is attached herewith.

Thank you so much.

Warm Regards
Priyanshi
Attachments
workfile.wf1

startz
Non-normality and collinearity are NOT problems!
Posts: 3551
Joined: Wed Sep 17, 2008 2:25 pm

Re: Insufficient numbers of observations and White Test

You appear to have included this same variable more than once.

priyanshi
Posts: 11
Joined: Wed Jun 19, 2013 12:36 pm

Re: Insufficient numbers of observations and White Test

Dear Startz,

I re-checked the equation. However, I couldn't detect the error in the equation. Is 3000 an insufficient number of observations for running this equation? I referred to an academic paper and the author has successfully estimated this model for 752 observations.

I am currently using Eviews 7.

Thank you.

Warm Regards
Priyanshi

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 12459
Joined: Tue Sep 16, 2008 5:38 pm

Re: Insufficient numbers of observations and White Test

I copy and pasted your equation specification and it estimated just fine. Make sure your copy of EViews 7 is fully up to date (Help->EViews Update)

startz
Non-normality and collinearity are NOT problems!
Posts: 3551
Joined: Wed Sep 17, 2008 2:25 pm

Re: Insufficient numbers of observations and White Test

priyanshi
Posts: 11
Joined: Wed Jun 19, 2013 12:36 pm

Re: Insufficient numbers of observations and White Test

Dear Gareth and Startz,

Thank you so much for your replies. I got the Eviews updated on my machine and re-estimated the equation and it is working successfully now.

Thank you so much!

Warm Regards,
Priyanshi