Disturbance term

[rickyyml]

Dear All,

I am very green with EViews, and hope that you would offer me a helping hand.

Now I am practicing how to evaluate Calendar Effect by reproduce some calculation in literature.

I found one literature as attached and tried to calculate descriptive statistics for day of the week (Table 1) and month of the year (Table 4), it is done, no problem.

When I tried to do Linear Regression Aanalysis for day of the week effect, I make a equation "day_of_the_week" as below:

equation ls return mon tue wed thu fri

But the result is totally difference with the literature, then I go though the literature again, I found a equation on the beginning of page 3 with a "Vit", it is said that "Vit is the disturbance term", but I cannot find this term in EViews manual, and really don't know what is it, and I believe that it is the main cause of the difference.

Would you please advise how can I modify my equation so that I can get the same result as the literature?

If it is convenience, please kindly explain what is "Disturbance term".

Thank you in advance.

[startz]

The disturbance term, or error, is the part of the equation left over after your explanatory variables. It's not something you include in your equation. In EViews, the estimated disturbance term--called the residuals--is put into the series RESID after you estimate an equation.

[rickyyml]

Hello, Startz

Thank you for your explanation regarding disturbance term.

Would you please advise how should I form the equation as well? I really have no idea why my result is totally difference with that of the literature.

It is extremely important for me, as I need to confirm the equation and use it on our group project. We are in hurry.

Thank you in advance.

ALL EXPERTS, PLEASE KINDLY HELP ME IF YOU COULD

[startz]

Your results match the results in the paper exactly.

[rickyyml]

Dear Startz

Really? Would you please explain to me how to generate the result for Table 2 & 3, I need it urgently.

As I don't know at all how to do it.

Thank you in advance.

[startz]

I suspect your instructor is hoping you will do the project, that way you'll learn more about EViews and about econometrics.

[rickyyml]

My difficulty is that, our instructor didn't teach us how to use EViews any, but ask us to do the project with EViews.

I have prepared the workfile by reference to manual and some help from this forums up to now. I am willing the learn but the deadline of the project don't wait for me familiar with EViews.