Estimating sigma2 in EViews

Problem

• Data: http://media.nek.lu.se/data/final_satm.wf1

Create an equation explaining final with satm and a constant. We will estimate the variance of the error terms \(σ^2\) in three different ways.

1. ”S.E. of regression” will give you \(s\) , the square root of \(s^2\) . Use this value to answer the question. Hint: eq01.@se will return the value of ”S.E. of regression” (assuming you named your equation eq01)
2. “Sum squared resid” will give you \(\sum{ e_i^2 }\) . Use this value to answer the question. Hint: eq01.@ssr will return the value of “Sum squared resid”.
3. Answer the question using only the residuals in resid.