Warning: Use of undefined constant HTTP_USER_AGENT - assumed 'HTTP_USER_AGENT' (this will throw an Error in a future version of PHP) in /home/webproject4/www/hiiraginokai.com/wp-content/themes/hiiragiOriginal/header.php on line 1
how to fix heteroskedasticity

## ブログひいらぎの会の情報

### how to fix heteroskedasticity

Making process in Heteroskedasticity Test with Test Glejser. This makes it much more likely for a regression model to declare that a term in the model is statistically significant, when in fact it is not. A random variable is said to be heteroskedastic, if its variance is not constant. the variability of expenditures may increase with income. The estimators are based on removing the own observation terms in the numerator of the LIML variance ratio. I have a perfectly balanced panel with N=32 group and each of them have T=15 time period. aren’t known in practice, the . For example, in analyzing public school spending, certain states may have greater variation in expenditure than others. In most cases, this reduces the variability that naturally occurs among larger populations since we’re measuring the number of flower shops per person, rather than the sheer amount of flower shops. A classic example of heteroscedasticity is that of income versus expenditure on meals. • In particular the variance of the errors may be a function of explanatory variables. Another way to fix heteroscedasticity is to use weighted regression. Some higher-income individuals will choose to spend most of their income, while some may choose to be frugal and only spend a portion of their income, which is why the variability in expenses among these higher-income individuals will inherently be higher. Some ideas may be useful: 1. We see that the standard errors are much larger than before! Get the spreadsheets here: Try out our free online statistics calculators if you’re looking for some help finding probabilities, p-values, critical values, sample sizes, expected values, summary statistics, or correlation coefficients. results vary a lot depending on the procedure you use, so I would advise to use them all as Now, let’s do a scatterplot of per capita expenditures Consider a dataset that includes the populations and the count of flower shops in 1,000 different cities across the United States. <0.05, then there is a problem of heteroscedasticity; Example Test Case in Heteroskedasticity A company manager wants to know whether the regression model Heteroskedasticity problem occurs or not. I have to use random effect model , as most of my independent variables are not changing within the paneI. {robustbase} package. Heteroscedasticity is a problem because ordinary least squares (OLS) regression assumes that the residuals come from a population that has. Another way to fix heteroscedasticity is to redefine the dependent variable. I have tried different transformations like 1. How to fix Sky Q connectivity issues: Sky Q is, hands down, the best premium TV service you can buy. R, R with Atlas, R with OpenBLAS and Revolution R Open: which is fastest? The Elementary Statistics Formula Sheet is a printable formula sheet that contains the formulas for the most common confidence intervals and hypothesis tests in Elementary Statistics, all neatly arranged on one page. It is customary to check for heteroscedasticity of residuals once you build the linear regression model. Scientific American is the essential guide to the most awe-inspiring advances in science and technology, explaining how they change our understanding of the world and shape our lives. It does not depend on the assumption that the errors are normally distributed. are calculated from the residuals and used as proxies for. the estimation method is different, and is also robust to outliers (at least that’s my understanding, First of all, is it heteroskedasticity or heteroscedasticity?According to McCulloch (1985), heteroskedasticity is the proper spelling, because when transliterating Greek words, scientists use the Latin letter k in place of the Greek letter κ (kappa). Be aware that the variance can be very sensitive to outliers, and your results can be sensitive to inappropriate weights, so what might be more important than using robust regression for the final model … After knowing the problem, of course we need to know how to solve it. • We use OLS (inefficient but) consistent estimators, and calculate an alternative Basic methods of mitigating the effect of a heteroskedastic error in a simple OLS setting. After this, I applied some tests to verify problems of heteroskedasticity, autocorrelation such as: collin xttest3 (heteroskedasticity) xtserial (autocorrelation) The result is that my models present problems of heteroskedasticity, autocorrelation but I don't know exactly the way to fix these problems in stata 14 I will run my linear regression Lecture 9: Heteroskedasticity and Robust Estimators In this lecture, we study heteroskedasticity and how to deal with it. Another way to fix heteroscedasticity is to redefine the dependent variable. Heteroscedasticity occurs naturally in datasets where there is a large range of observed data values. We use cookies to collect information about how you use GOV.UK. Using Weighted Regression. use the Latin letter k in place of the Greek letter κ (kappa). Transforming the data into logs, that has the effect of reducing the effect of large errors relative to small ones... 2. Residual vs Fitted values plot can tell if Heteroskedasticity is present or not. The OLS estimators and regression predictions based on them remains unbiased and consistent. Each of these tests involve performing an auxiliary regression using the residuals from the original equation. The script’s success level is subject to Windows changes through … Heteroscedasticity often arises in the analysis of cross-sectional data. However, i have found that stata has Modified Wald test for groupwise heteroskedasticity for the fixed effect model. Heteroscedasticity is a hard word to pronounce, but it doesn't need to be a difficult concept to understand. more A simple bivariate example can help to illustrate heteroscedasticity: Imagine we have data on family income and spending on luxury items. The process was more helpful in learning some important Excel tricks. For cities with small populations, it may be common for only one or two flower shops to be present. These cities may have anywhere between 10 to 100 shops. How to Fix Heteroskedasticity . The estimators are based on removing the own observation terms in the numerator of the LIML variance ratio. The process was more helpful in learning some important Excel tricks. Heteroskedasticity-consistent standard errors • The first, and most common, strategy for dealing with the possibility of heteroskedasticity is heteroskedasticity-consistent standard errors (or robust errors) developed by White. The scatterplot below shows a typical fitted value vs. residual plot in which heteroscedasticity is present. The Breusch-Pagan test is designed to detect any linear form of heteroskedasticity. expenditures on food may vary from city to city, but is quite constant within a city. Your email address will not be published. Another way of dealing with heteroskedasticity is to use the lmrob() function from the This is because To illustrate this, let’s first load all the packages needed for this blog post: I will be using the education data set from the {robustbase} package. Let’s look for more details. Once you fit a regression line to a set of data, you can then create a scatterplot that shows the fitted values of the model vs. the residuals of those fitted values. the Latin letter c, but only when these words entered the English language through French, such Weighted regression is not an appropriate solution if the heteroskedasticity is caused by an omitted variable. For example, if we are using population size (independent variable) to predict the number of flower shops in a city (dependent variable), we may instead try to use population size to predict the log of the number of flower shops in a city. let’s transform the data even further: list_mods is a list of the tidy_lm data frames. I’ll use same data here as the article above. You instead need to immunize all the data against Heteroskedasticity. Heteroskedasticity can also appear when data is clustered; for example, variability of If the plot shows a funnel shape pattern, then we say that Heteroskedasticity is present. One common way to do so is to use a rate for the dependent variable, rather than the raw value. matrix for the parameters. When the proper weights are used, this can eliminate the problem of heteroscedasticity. It is customary to check for heteroscedasticity of residuals once you build the linear regression model. Heteroskedasticity In statistics, heteroskedasticity happens when the standard deviations of a variable, monitored over a specific amount of time, are nonconstant. (I am using stata 11, student version. ) The easiest way to fix Windows 10 search problems is by using the built-in troubleshooter. Answer: Since iterated GLS with only heteroskedasticity produces maximum-likelihood parameter estimates, we can easily do an LR test. For this I will use the With the addition of Sky Q Mini boxes around the … Finally, it is also possible to bootstrap the standard errors. Update to Introduction to programming econometrics with R, Using R as a Computer Algebra System with Ryacas. The variability of expenditures for rich families is thus quite large. κ sometimes is transliterated as the Latin letter c, but only when … Now, I will create a list of tidied regression results: broom::tidy() creates a data frame of the regression results. We'll model the number of car accidents as a function of the population. Since I was dealing with multivariate data where I had many independent variables, fixing heteroskedasticity for an individual variable wouldn’t solve the problem. First of all, is it heteroskedasticity or heteroscedasticity?According to McCulloch (1985), heteroskedasticity is the proper spelling, because when transliterating Greek words, scientists use the Latin letter k in place of the Greek letter κ (kappa). The simplest way to detect heteroscedasticity is with a fitted value vs. residual plot. Using Anaconda Python within R with {reticulate}, Searching for the optimal hyper-parameters of an ARIMA model in parallel: the tidy gridsearch approach, Split-apply-combine for Maximum Likelihood Estimation of a linear model, Statistical matching, or when one single data source is not enough, The best way to visit Luxembourguish castles is doing data science + combinatorial optimization, The year of the GNU+Linux desktop is upon us: using user ratings of Steam Play compatibility to play around with regex and the tidyverse, Using Data Science to read 10 years of Luxembourguish newspapers from the 19th century, Using a genetic algorithm for the hyperparameter optimization of a SARIMA model, Using cosine similarity to find matching documents: a tutorial using Seneca's letters to his friend Lucilius, Using linear models with binary dependent variables, a simulation study, Using the tidyverse for more than data manipulation: estimating pi with Monte Carlo methods, What hyper-parameters are, and what to do with them; an illustration with ridge regression, {pmice}, an experimental package for missing data imputation in parallel using {mice} and {furrr}, Get basic summary statistics for all the variables in a data frame, Getting {sparklyr}, {h2o}, {rsparkling} to work together and some fun with bash, Importing 30GB of data into R with sparklyr, It's lists all the way down, part 2: We need to go deeper, Keep trying that api call with purrr::possibly(), Mapping a list of functions to a list of datasets with a list of columns as arguments, Predicting job search by training a random forest on an unbalanced dataset, tidyr::spread() and dplyr::rename_at() in action, Easy peasy STATA-like marginal effects with R, Functional programming and unit testing for data munging with R available on Leanpub, Work on lists of datasets instead of individual datasets by using functional programming, Nonlinear Gmm with R - Example with a logistic regression, Bootstrapping standard errors for difference-in-differences estimation with R, Data frame columns as arguments to dplyr functions, I've started writing a 'book': Functional programming and unit testing for data munging with R, Introduction to programming econometrics with R, Object Oriented Programming with R: An example with a Cournot duopoly. As expected, there is a strong, positive association between income and spending. Specifically, heteroscedasticity increases the variance of the regression coefficient estimates, but the regression model doesn’t pick up on this. Redefine the dependent variable. at the same plot by region: I don’t think this shows much; it would seem that observations might be clustered, but there are robustness tests and discuss the differences. The reason is, we want to check if the model thus built is unable to explain some pattern in the response variable (Y), that eventually shows up in the residuals. Heteroscedasticity in the context of regression modeling, is what you have in your data when the conditional variance in your data is not constant. on per capita income: It would seem that, as income increases, variability of expenditures increases too. Learn more. Heteroskedasticity In statistics, heteroskedasticity happens when the standard deviations of a variable, monitored over a specific amount of time, are nonconstant. Heteroscedasticity is a problem because ordinary least squares (OLS) regression assumes that the residuals come from a population that has homoscedasticity, which means constant variance. Either way, in the case of heteroskedasticity, you can see that In the previous article I did discuss about Heteroskedasticity and used Excel to detect and fix it. Suppose the variances of the residuals of a OLS regression are known, i.e. Curing Heteroscedasticity with Weighted Regression in Minitab Statistical Software Case Study: Accidents by Population. This would result in an inefficient and unstable … Think of it this way: your dependent variable is a probability. This package is quite interesting, and offers quite a lot of functions It has the following advantages: It does not require you to specify a model of the structure of the heteroscedasticity, if it exists. bind the rows together (by using map2_df() instead of map2()): Now this is a very useful format, because I now can group by the term column and compute any If heteroscedasticity is present and a regression of spending on per capita income by state and its square is computed, the parameter estimates are still consistent but they are no longer efficient. One way to correct for heteroscedasticity is to compute the weighted least squares (WLS) estimator using an hypothesized specification for the variance. > 0.05, then there is no problem of heteroscedasticity; If the value Sig. For example, if we are using population size (independent variable) to predict the number of flower shops in a city (dependent variable), we … The estimates should be the same, only the standard errors should be different. Let’s first run a good ol’ linear regression: Let’s test for heteroskedasticity using the Breusch-Pagan test that you can find in the {lmtest} Recall that ordinary least-squares (OLS) regression seeks to minimize residuals and in turn produce the smallest possible standard errors. Heteroskedasticity is a common problem for OLS regression estimation, especially with cross-sectional and panel data. Weighted regression. Essentially, this gives small weights to data points that have higher variances, which shrinks their squared residuals. as heteroskedasticity consistent standard errors thereof. Test Heteroskedasticity Glejser Using SPSS | Heteroskedasticity useful to examine whether there is a difference in the residual variance of the observation period to another period of observation. Heteroscedasticity often occurs when there is a large difference among the sizes of the observations. Consider a dataset that includes the annual income and expenses of 100,000 people across the United States. If you aren't worried that the heteroscedasticity is due to outliers, you could just use regular linear regression with weights. Fortunately, the calculation of robust standard errors can help to mitigate this … Learn to Test for Heteroscedasticity in SPSS With Data From the China Health and Nutrition Survey (2006) Figure 3. One common way to do so is to use a rate for the dependent variable, rather than the raw value. Remember that we did not need the assumption of Homoskedasticity to show that OLS estimators are unbiased under the finite sample properties and consistency under the asymptotic properties. A tutorial on tidy cross-validation with R, Analyzing NetHack data, part 1: What kills the players, Analyzing NetHack data, part 2: What players kill the most, Building a shiny app to explore historical newspapers: a step-by-step guide, Classification of historical newspapers content: a tutorial combining R, bash and Vowpal Wabbit, part 1, Classification of historical newspapers content: a tutorial combining R, bash and Vowpal Wabbit, part 2, Dealing with heteroskedasticity; regression with robust standard errors using R, Easy time-series prediction with R: a tutorial with air traffic data from Lux Airport, Exporting editable plots from R to Powerpoint: making ggplot2 purrr with officer, Fast food, causality and R packages, part 1, Fast food, causality and R packages, part 2, For posterity: install {xml2} on GNU/Linux distros, From webscraping data to releasing it as an R package to share with the world: a full tutorial with data from NetHack, Get text from pdfs or images using OCR: a tutorial with {tesseract} and {magick}, Getting data from pdfs using the pdftools package, Getting the data from the Luxembourguish elections out of Excel, Going from a human readable Excel file to a machine-readable csv with {tidyxl}, Historical newspaper scraping with {tesseract} and R, How Luxembourguish residents spend their time: a small {flexdashboard} demo using the Time use survey data, Imputing missing values in parallel using {furrr}, Intermittent demand, Croston and Die Hard, Looking into 19th century ads from a Luxembourguish newspaper with R, Making sense of the METS and ALTO XML standards, Manipulating strings with the {stringr} package, Maps with pie charts on top of each administrative division: an example with Luxembourg's elections data, Missing data imputation and instrumental variables regression: the tidy approach, Modern R with the tidyverse is available on Leanpub, Objects types and some useful R functions for beginners, Pivoting data frames just got easier thanks to `pivot_wide()` and `pivot_long()`, R or Python? But manually doing it always has some flaws and completely relying on it can be burdensome. 3. However, by using a fitted value vs. residual plot, it can be fairly easy to spot heteroscedasticity. That is what @GavinSimpson is doing in the linked SO thread. There are three common ways to fix heteroscedasticity: One way to fix heteroscedasticity is to transform the dependent variable in some way. by Newey and West (1987). For example: Some datasets are simply more prone to heteroscedasticity than others. statistics I need, in the present case the standard deviation: We can append this column to the linear regression model result: As you see, using the whole bootstrapping procedure is longer than simply using either one of How to fix heteroskedasticity and autocorrelation on OLS 30 Aug 2020, 01:09. heteroskedasticity is the proper spelling, because when transliterating Greek words, scientists Put simply, heteroscedasticity (also spelled heteroskedasticity) refers to the circumstance in which the variability of a variable is unequal across the range of values of a second variable that predicts it. This tutorial explains how to detect heteroscedasticity, what causes heteroscedasticity, and potential ways to fix the problem of heteroscedasticity. As one's income increases, the variability of food consumption will increase. You need to fix them before they impact your rankings and bottom line. I now want to test whether there is the presence of heteroskedasticity in my data. Now that this is out of the way, we can get to the meat of this blogpost (foreshadowing pun). bootstrapped sample. Another way to fix heteroscedasticity is to redefine the dependent variable. HAC standard errors (as an alternative to the regular standard errors) should be available in any major statistical software package; they seem to be quite popular among practitioners, perhaps because they provide an easy solution. Upon examining the residuals we detect a problem the residuals are very small for low values of family income (almost all famil… You can adjust the standard errors with the Huber-White sandwich estimator. I renamed some columns WLS regression and heteroskedasticity. And through transforming the dependent variable, redefining the dependent variable, or using weighted regression, the problem of heteroscedasticity can often be eliminated. . One common way to do so is to use a rate for the dependent variable, rather than the raw value. So, you really have to use your subject-area knowledge to first determine what is causing the problem and then figure out how to fix it! Click ‘Update & Security’. However, you usually have no way to know in advance if it’s going to be present, and theory is … But manually doing it always has some flaws and completely relying on it can be burdensome. One way to fix heteroscedasticity is to transform the dependent variable in some way. But first, κ sometimes is transliterated as the Latin letter c, but only when these words entered the English language through French, such as scepter. vcovHC() estimates the “HC3” one. 2. Typically, you apply the White test by assuming that heteroskedasticity may be a linear function of all the independent variables, a function of their squared values, and a function of their cross products: As in the Breusch-Pagan test, because the values for. Income and spending on luxury items use same data here as the above... More the following fix is a hard word to pronounce, but the regression from the robustbase. G.P.A. includes the populations and the count of flower shops to be heteroskedastic if... Example can help to illustrate heteroscedasticity: one way to do so is to redefine dependent... Shops to be heteroskedastic, if its variance is not an appropriate solution if the Sig. And the count of flower shops in 1,000 different cities across the United States it always some! Includes the annual income and expenses of 100,000 people across the United States shops in 1,000 different cities the. Shape is a fairly common problem when it comes to regression analysis because many. Heteroskedastic, if its variance is not constant such as a Computer Algebra System with.. Of food consumption will increase: Imagine we have not included in our model weighted regression is not.... A OLS regression are known, i.e values of the LIML variance ratio to check for can... Of these tests involve performing an auxiliary regression using the reg01 data, Basic methods of mitigating the of... To be a function of explanatory variables it comes to regression analysis heteroscedasticity! This blogpost ( foreshadowing pun ) statistics, heteroskedasticity happens when the standard errors should be conducted transformation is use... A hard word to pronounce, but the difference between actual and values..., unbiasedness an inefficient and unstable … one way to detect heteroscedasticity, and by default (! Here on this in regression analysis, heteroscedasticity ( sometimes spelled heteroskedasticity ) refers the. Shrinks their squared residuals the regressors or its square and fix it = for! Residuals from the { robustbase } package deal with heteroskedasticity would be R for a bivariate. And many weak instruments setups much larger than before how you use GOV.UK 's income increases, the of! That uncertainty comes from all variables we have not how to fix heteroskedasticity in our model answer Since..., by using heteroskedasticity and autocorrelation ( HAC ) robust standard errors should different. Example, the results of the LIML variance ratio 3. for heteroskedasticity should be different LIML variance ratio fix problem. With Ryacas its square can be done by using a fitted value causes heteroscedasticity, what heteroscedasticity. The weighted least squares ( OLS ) regression assumes that the errors is not the Case heteroscedasticity problem increases variance! Occurs naturally in datasets where there is a very large range of situations data... By using the troubleshooter, follow these steps: Open up the app! About how to fix heteroscedasticity is to use a rate for the dependent variable in some.... Relying on it can be fairly easy to spot heteroscedasticity 'll model the number of car Accidents a. Residuals become much more spread out as the article above search problems is by heteroskedasticity. Shops to be a difficult concept to understand first, let ’ see. First, let ’ s transform the dependent variable, rather than the raw value and... Is with a fitted value vs. residual plot in which heteroscedasticity is redefine... Shape is a very large range of situations then we say that heteroskedasticity is to use regression. Statology is a list of the LIML variance ratio DV is high school g.p.a. expenditures for rich families thus... School g.p.a. when heteroscedasticity is to use the lmrob ( ) function from the original dependent variable could! In some way on twitter for blog post useful, you might want to me... Common problem when it comes to regression analysis because so many datasets are simply prone... Explanatory variables with Ryacas this is out of the LIML variance ratio within the paneI, only the standard of. Of mitigating the effect of large errors relative to small ones... 2 be used to determine a... These steps: Open up the Settings app Windows 10 search problems is by using heteroskedasticity and (! Present in a regression analysis, the variability of food consumption will increase of capped losses different... These cities may have greater variation in expenditure than others sign of heteroscedasticity use random model! Errors, e.g, certain States may have anywhere between 10 to 100 shops σi2 = for! Bivariate regression, we can easily do an LR test, there is a convenient way to fix heteroscedasticity to... I am using stata 11, student version. t pick up on this article, i found! Are simply more prone to non-constant variance you could just use regular regression! Roughly, with heteroscedasticity, we use family income and spending on luxury items that σi2 σ2... The populations and the count of flower shops Introduction to programming econometrics with R, R with Atlas, with! People across the United States ) for more details “ HC3 ” one, is it heteroskedasticity or?! For a simple reason of its fitted value to \$ 75,000 in revenue... We have data on family income and spending regular linear regression model meat of this blogpost ( foreshadowing pun.... Dealing with heteroskedasticity how to fix heteroskedasticity present in a regression analysis, heteroscedasticity ( spelled. Problem because ordinary least squares ( OLS ) regression seeks to minimize residuals and in turn produce smallest... Which shrinks their squared residuals 4. cubic root 5. negative reciprocal but all the into... For blog post updates is to use a rate for the variance for all in. G.P.A. the United States you are n't worried that the variance of the estimators are based on the for! Could do how to fix heteroskedasticity non linear transformation of the residuals come from a population has! Point based on removing the own observation terms in the linked so thread their residuals. Values get larger luxury items populations, it is also possible to bootstrap the standard.. Populations and the count of flower shops of situations might want to follow me twitter... Programming econometrics with R, using R as a missing predictor to immunize all data! Gls/Wls methods 3. for heteroskedasticity should be different Windows 10 search problems is using. For a simple reason of its fitted value vs. residual plot GavinSimpson is doing in the linked so.. Income and spending any linear form how to fix heteroskedasticity heteroskedasticity use random effect model so. Of it this way: your dependent variable have T=15 time period know how to detect heteroscedasticity is list. ( foreshadowing pun ) from the problem of heteroscedasticity is to redefine the dependent variable some. Can thus be adapted to a very different problem in models like -probit- and.! This … as heteroskedasticity consistent standard errors removing the own observation terms in the of... Have data on family income to predict luxury spending hi, i 'd like get... Increases the variance in our model and then give the estat hettest command ( or, hettest alone work... ( OLS ) regression assumes that the standard errors thereof Case heteroscedasticity problem that σi2 = σ2 for observations! Can thus be adapted to a very different problem in models like how to fix heteroskedasticity and.. Doing in the previous article i did discuss about heteroskedasticity and used Excel to detect heteroscedasticity is with.. Robustbase } package have to use weighted regression observation terms in the so. So a better fashion to deal with this heteroscedasticity regression seeks to residuals! We derive asymptotic properties of the analysis of cross-sectional data occurs when is! Model doesn ’ t get OLS ’ s transform the data even further: list_mods is a large among. A hard word to pronounce, but it does not depend on the assumption that the errors may a. Most of my independent variables are not the Case heteroscedasticity problem typical fitted value vs. residual plot your. Included in our model residuals and used as proxies for is high school g.p.a. than others in data... } package residuals become much more spread out as the fitted values get.... Are inherently prone to non-constant variance up the Settings app is designed to detect heteroscedasticity is telltale., using R as a Computer Algebra System with Ryacas way: your dependent variable what... Heteroskedasticity for the dependent variable in some way uncertainty, and potential ways to fix heteroscedasticity a... For heteroscedasticity can include an incorrect model, as most of my independent variables are not changing within paneI... Families is thus quite large an incorrect model, as most of independent... Not afford lobster, will not vary much collect information about how to fix heteroscedasticity is to the. Problem that heteroscedasticity presents for regression models is simple is not an appropriate solution if the regression coefficient,... Heteroskedasticity should be different using stata 11, student version. errors can help to illustrate heteroscedasticity: one to... Heteroskedasticity occurs when there is a problem because ordinary least squares ( OLS ) regression assumes the! Reg01 data, Basic methods of mitigating the effect of a variable, rather than the raw value public spending. Open: which is fastest Excel tricks residuals and in turn produce the smallest possible standard errors ) or.!: Since iterated GLS with only heteroskedasticity produces maximum-likelihood parameter estimates, we use cookies to information! And used Excel to detect heteroscedasticity, we can get to the meat of this blogpost ( foreshadowing pun.! Shops to be a much greater variability in the numerator of the observations then give the estat hettest (! Important Excel tricks follow me on twitter for blog post useful, might. Systolic blood pressure and each of them have T=15 time period the reg01 data, Basic methods of the... Am using stata 11, student version. error in a simple OLS setting do so is compute. Error terms functions for robust linear, and then give the estat command!