To execute the testThe tool supports interface of Foresight Analytics Platform 9 or earlier.
The Ramsey RESET Test is the generalized test of the following linear regression model specification errors:
Missing variables. Some regression explanatory variables are not specified.
Incorrect functional form. Some of the variables or all variables should be transformed using logarithmic, exponential, inverse or some other function.
Correlation between the X factor and random model component, that can be caused by factors measurements errors, equation systems analysis or other reasons.
Such errors result in a shift of regression model residual mean.
Test parameters:
Explanatory Variables. Factors that affect the behavior of the output variable. By default, the list includes all factors of the tested linear regression model. The factor checkbox indicates that the factor is included into the test. All factors are involved in the test by default. Deselect the checkbox to exclude the factor from the test. The number of explanatory variables should be at least one.
Significance Level. The significance level value, at which the hypothesis is rejected.
Power. The number of additional regressors included into test regression.
The results are shown as a table, containing:
The following is given for each statistics: value, statistics probability and the test result (whether the hypothesis on acceptability of functional form is accepted or rejected).
Coefficient. Regression coefficients calculated at the selected factors and additional regressors.
NOTE. If test parameters have been specified incorrectly, the result table is not displayed. An error message is displayed instead of the table.
Example of the results table:
See also: