Name
ols0 — ordinary least squares
CALLING SEQUENCE
[bhat,ixpx]=ols0(y,x)
PARAMETERS
- Input
y = dependent variable vector (nobs x 1)
x = independent variables matrix (nobs x nvar)
- Output
bhat = estimated beta in y=x*beta+u
ixpx = inverse of matrix x'*x
DESCRIPTION
The most basic least-squares regression: provides only the estimated beta, bhat, and the inverse of matrix x'*x. Used mainly in other programs.
EXAMPLE
x=grand(15,3,'nor',0,1)
y=x*ones(3,1)+grand(15,1,'nor',0,1)
b=ols0(y,x)