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Re: st: Non-linear regression


From   Daniel Feenberg <feenberg@nber.org>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Non-linear regression
Date   Tue, 8 Feb 2011 07:23:30 -0500 (EST)


On Tue, 8 Feb 2011, Hamizah Hassan wrote:

Greetings all,

Firstly, I apologize because my question might be more towards statistics rather than Stata. But hopefully there will be a statistician out there that could help me. I would like to run non-linear regression by including the linear and quadratic functions of the variable. I just realize that if the variable is in percentage, the quadratic figure is higher than the linear figure. However, if it is in decimal, it would be the other way around and definitely it will effect on the meaning of the results. Could anybody clarify on this matter?

It is an elementary question, but still a good one. The answer is that the values of the squared percentage are always going to be 10,000 (100 squared) times as great as the values of the squared percentage. So the least squares estimate of the coefficient will always be 10,000 times smaller, and none of the other coefficients need to change, nor do any of the summary statistics such as R**2.

Daniel Feenberg


Thanks in advance.

Hamizah Hassan
RMIT University


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