How to Run a Regression on Eviews
Regression Analysis is quickly becoming more important in all economist’s playbooks. Econometric’s popularity has soared since statistical analysis and regression analysis has become more precise, errors have been rectified and with the push for computer software and applications to ease the once grueling task.
Regression analysis basically allows variables to be tested against other variables to show what impact they have on one another, how significant independent variables are to the dependent variable, how significant a variable is in a model, whether there is correlation between variables, and to even prove or disprove a notion. Expanding upon the results can even yield forecasts of the data for upcoming periods.
Regression analysis is important in not only calculating the United State’s GDP, but it can also determine the link between fatty food and heart disease, the impact of flossing on your heart’s health, be used in court cases in determining consumer complaints, predicting sales each period, website traffic over a year, and even determining what will push a MLB team to the playoffs. Essentially, it can be used in all parts of life that involves variables impacting other things, and for predicting what will happen next.
One of the most often used ways to run a regression is through the statistical and econometrics program called Eviews. To run a regression eviews, do the following steps:
(Assuming the data is already open and on the screen)
Go to the top of the screen and click on “Quick” and then “Estimate Equation”
A window will then pop up. From there type in your variables as follows:
Dependent variable c independent variable 1 independent variable 2 …
This will open up the regression analysis data that shows the coefficients, T-stat, P values, BIC and AIC stats, R squared and so on.