# ols regression

1. ### FE, RE, OLS Cluster?

Hi all, I've a question which regression model to use? I've the following model: Taxavoid= PC + Before/after + PC * Befor/after tax avoid = continious where PC is ratio variable of political party/ i coudl have used 1 or 0 (REPvsDEM) but, I use ratio, more info. PC= REP / (DEM+REP) so ratio...
2. ### standardized and not standardized independent variables

May I include a standardized independent variable in a multiple regression model, where other independtent variables and the dependent variable are not standardized?
3. ### Significancy test

Hello, suppose i have example of buyer's age from 3 product Notebook:35,25,40,30 Smartphone:20,21,25,30,25 Watch:35,20,30,45,35 I want to make a hypothesis like this: "Is buyer's age will significanly affect product choices?" So the questions: 1. I confuse how to choose independent variable...
4. ### OLS Regression Output interpretation (really urgent)

Hi guys, I have the following output and I really need your help with this: The questions are: a) Regressor X3 is a dummy variable (X3 = 1 if individual belongs to group 1). What interpretation can you give to the corresponding coefficient? b) The dependent variable was generated by the...
5. ### Regression of gender on income

Genders are Male & Female Entrepreneur is given by dummy entrepreneur (1) Income is based in 16 groups (0-10k; 10k-20k; 20k-30k etcetera)? How can I approach this with an OLS method and for what should I test (correlation, homoskewdasticy etcetera)? I know that there are other factors and I...
6. ### Unusual distribution of the continuous outcome

Hello dear forum members! I am seeking your guidance with the following issue. So, I am estimating a "classic" difference-in-difference model (using pooled OLS estimator): Y = time + treated + time*treated, where Y is the average Medicare payment (amp) in \$. Here is the descriptive...
7. ### RSS Residual Sum Squares

Hi im analysing my dissertation which has a OLS model. My RSS figures are very very big in some cases above 15000. I know a high RSS indicates a poorly fitted model. i have run the regression for 6 different countries using 154 observations per variable using 3 variables. My dependant...
8. ### Standard Error of Regression

Im currently working on a dissertation. After running an OLS regression I have a statistic called the standard error of the regression. I have analysed the standard error of the coefficients but I do not know what the difference between the standard error of regression and coefficient are...
9. ### How does OLS regression related to generalise linear modelling

Hi, I need to understand how OLS regression relates to generalise linear modelling. Does the relationship only exist when the assumptions of OLS regression can not be met i.e. the relationship between the dependent and independent variables is not linear, the regressor variables are not...
10. ### Two variable OLS Regression - using normal equations

Hi, I am experiencing difficulties in understanding the following question; I have been assigned two variables (X and Y), and have been given a data-set which consists of 50 data entries for both variables X and Y, ranging from 15-60. I have also calculated ƩX, ƩX^2, ƩXY and ƩY. Essentially...
11. ### Durbin-Watson bound dU>2.0

Hello. I was wondering, how to interpret bounds of Durbin-Watson test (dU, dL) if dU is greater than 2.0. I know that it is an extreme case, but just want to know... For example, if n=13 and k=8 than dU=3.182, dL=0.090. 4-dU=0.818, 4-dL=3.91... Does it mean that between 0.090 and 3.190 test...
12. ### Difference-in-difference regression

Hello, I have a problem with my current research project and I am not very experienced with statistics so it would be great to find some help here! I have performance data of companies which can be categorized into two different groups (state-owned, not state-owned). Now I would like to...
13. ### Interaction between binary and continuous variable in OLS

I am trying to examine the association between maternal education and child school test scores using the following equation. TestScore = β0 + β1 EduYrMom+ β2 FemaleChild+ β3 EduYrMom * FemaleChild + εij where TestScores is the test score of the child, EduYrMom is the years of education of...
14. ### Non-linearity in OLS-Models, Multinominal Logit-Regression

Hey there, I have a question connected to the Ols-Model in case of nonlinearity between parameters. What should be done if the assummption of Linearity in OLS-Model ist not fulfilled and there is an non-linear relationship between the used parameters? And my second question is if I can use...
15. ### Small sample cross-sectional regression: different levels

I have a small sample of about 50 firms, clustered in 20 countries. The main explanatory variables of interest are all firm-specific, as well as the dependent variable. However, I also want to include a possible control variable on the country-level (imagine ''unemployment_rate"). Can...
16. ### beginner's specification problems

Hi, I am doing an assignment on unemployment (DV) and racial discrimination - specifically african-american population - and I am in doubt whether to use percent of resident population black resident alone, or black alone resident population. If I use the latter, would I need to switch from an...
17. ### Mixing lasso with OLS

Hi, I am looking at a data set of 45 continuous IV and 1 DV, trying to find an acceptable regression model. I tried the lasso with cross-validation and ended up with about 10 non-zero coefficients in the best model. However, when I ran the sanity test of building the OLS model with the 10...