7/24/2019 How to Use EViews - Unit 2 - Descriptive Statistics and Histogram

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How to use EViews - Examples form BrooksIntroductory Econometrics for Finance(3ed)

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How to use EViews

Descriptive statistics and histogram

Outline

- Descriptive statistics

- Plot the distribution (histogram)

Reading: Brooks 3ed Section 2.5 (p.61~69) (Screenshot on p.68)

Data: DHPseries form the UKHP Workfile(ukhp.wf1)

Descriptive statistics and histogram

View Descriptive Satistics & Tests Histogram and Stats

View Descriptive Satistics & Tests Stats Table

JB test for normality (see Gujarati p.147~150): p = value = 0.5 >> usual significance

level, we fail to reject normality, i.e. the distribution is like a normal distribution

7/24/2019 How to Use EViews - Unit 2 - Descriptive Statistics and Histogram

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How to use EViews - Examples form BrooksIntroductory Econometrics for Finance(3ed)

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Quick Graph Typeseries DHP

Graph type Distribution Histogram choose Options

7/24/2019 How to Use EViews - Unit 2 - Descriptive Statistics and Histogram

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How to use EViews - Examples form BrooksIntroductory Econometrics for Finance(3ed)

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Add Theoretical Density OK

Add Theoretical Density = 0.438, = 1.2 OK

7/24/2019 How to Use EViews - Unit 2 - Descriptive Statistics and Histogram

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How to use EViews - Examples form BrooksIntroductory Econometrics for Finance(3ed)

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We see the distribution is quite close to a normal distribution.

Next, we find IQR (IQR = Q3Q1, see p.64)

View Descriptive Statistics & Tests Statistics by Classification

We first find Q1 by setting Quantile = 0.25

7/24/2019 How to Use EViews - Unit 2 - Descriptive Statistics and Histogram

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How to use EViews - Examples form BrooksIntroductory Econometrics for Finance(3ed)

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Then we find Q3 by setting Quantile = 0.75

Therefore, IQR = Q3 - Q1 = 1.245629-(-0.344125) = 1.59

(Note that the figure on p.69 of Brooks is incorrect.)