# st: Re: random intercept model: How To Interpret LR test ?

 From "Martin Weiss" To Subject st: Re: random intercept model: How To Interpret LR test ? Date Sun, 31 May 2009 22:35:58 +0200

```<>

Information about it is found in -help j_xtmixedlr-

HTH
Martin
_______________________
```
----- Original Message ----- From: "Christian Weiss" <christian.weiss@nightberry.de>
```To: <statalist@hsphsun2.harvard.edu>
Sent: Sunday, May 31, 2009 9:08 PM
Subject: st: random intercept model: How To Interpret LR test ?

```
```Dear Statalisters,

I estimated the following Model in Stata:

xtmixed cr5 firmsize firmrisk firmrisk_sqr firmperformance regulation
shareholderprotection || country: || industry: , variance

yielding the followng results stated at the end of this Mail.

Could you give me any advice how the LR test? ( LR test vs. linear
regression:       chi2(2) =    56.66   Prob > chi2 = 0.0000) or where
to find information on this?

Best regards
Christian

```
Mixed-effects REML regression Number of obs = 1631
```
-----------------------------------------------------------
|   No. of       Observations per Group
Group Variable |   Groups    Minimum    Average    Maximum
----------------+------------------------------------------
country |       11         32      148.3        229
industry |       77          1       21.2        130
-----------------------------------------------------------

```
Wald chi2(6) = 52.01 Log restricted-likelihood = -7984.3674 Prob > chi2 = 0.0000
```
------------------------------------------------------------------------------
```
cr5 | Coef. Std. Err. z P>|z| [95% Conf. Interval]
```-------------+----------------------------------------------------------------
```
firmsize | -11.92074 6.35883 -1.87 0.061 -24.38381 .5423412 firmrisk | -13.85418 4.797781 -2.89 0.004 -23.25766 -4.450705 firmrisk_sqr | 4.109892 2.060116 1.99 0.046 .0721388 8.147645 firmperfor~e | -.6474671 .8563392 -0.76 0.450 -2.325861 1.030927 regulation | 7.223811 4.164931 1.73 0.083 -.9393036 15.38692 shareholde~n | -.5501527 .1691597 -3.25 0.001 -.8816997 -.2186057 _cons | 123.6726 17.48342 7.07 0.000 89.40575 157.9395
```------------------------------------------------------------------------------

------------------------------------------------------------------------------
```
Random-effects Parameters | Estimate Std. Err. [95% Conf. Interval]
```-----------------------------+------------------------------------------------
country: Identity            |
```
var(_cons) | 47.99412 34.40126 11.77778 195.5748
```-----------------------------+------------------------------------------------
industry: Identity           |
```
var(_cons) | 62.90742 23.75873 30.00696 131.8809
```-----------------------------+------------------------------------------------
```
var(Residual) | 1019.328 36.52924 950.1883 1093.498
```------------------------------------------------------------------------------
```
LR test vs. linear regression: chi2(2) = 56.66 Prob > chi2 = 0.0000
```*
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```
```
*
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```