Code for Ch.2 #7

use "(your data source here)\2.ex.vonHippelLindau.dta"

generate logp_ne = ln( p_ne)

generate logtumorvol = ln( tumorvol)

regress logp_ne logtumorvol

predict lnresid, rstudent

predict logyhat, xb

predict logstdp, stdp

generate logci_u = logyhat+invttail(_N-2, .025)* logstdp

generate logci_l = logyhat-invttail(_N-2, .025)* logstdp

regress logp_ne logtumorvol

display invttail(_N-3, .025)

scatter lnresid logtumorvol, yline(-2.0322445 0 2.0322445) lowess lnresid logtumorvol