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Re: st: Polynomial OLS - Interpreting results


From   Claude Francoeur <claude.francoeur@hec.ca>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   Re: st: Polynomial OLS - Interpreting results
Date   Tue, 30 Dec 2008 14:10:28 -0500

We were expecting to have 2 bends in our model (y = X1 X1squared X1cubed). The results show only one change of sign between Xsquared and Xcubed. Coefficient of X1 is negative and significant, coeff. of X1 squared is negative and not sig. and coeff. of X1 cubed is positive and significant. How should we interpret these results (see a tentative interpretation in the original post)?

Many thanks!
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