An empirical investigation of the box-cox model and a nonlinear least squares alternative

In this paper we present a generalized functional form estimator, recently developed by jeffrey Wooldridge; and then we compare it empirically to the popular Box-Cox (BC) estimator using three data sets. We begin by briefly reviewing the drawbacks of the BC estimator. We Then introduce the nonlinear lest squares (NLS) alternative of Wooldridge which retains the desirable qualities of the BC estimator without the associated theoretical problems. We continue by applying both the BC and the NLS models to data from three classic hedonic regression studies and then compare the estimation resuts-point estimates, inferences and fitted values. The estimations include a wage rate equation, and two computer hedonic regression equations, one using data from a classic study by Gregory Chow and the other using an IBM data set that formed the basis of the new official BLS computer price index.     

A Survey of the Teaching of Statistics in M.B.A. Programs

A survey of business schools was conducted to obtain information about the current state of the teaching of business statistics to students enrolled in M.B.A. degree programs. The survey was undertaken for and presented at a June 1986 conference on “Making Statistics More Effective in Schools of Business,” held at the University of Chicago's Graduate School of Business. Information was elicited concerning both the required statistics sequence and elective statistics courses for M.B.A. students, as well as computer usage in these courses. This article summarizes the information obtained from the survey.     

Developing “A Framework for Planning U.S. Federal Statistics, 1978–1989”

The Statistical Policy Division of the Office of Management and Budget has the overall responsibility for the planning and coordination of U.S. government statistics. The present staff of the Statistical Policy Division is attempting, through an integrated publication entitled “A Framework for Planning U.S. Federal Statistics, 1978–1989,” to state its perspective on necessary developments in the coming years. This article illustrates the character of the Framework materials and outlines the process for public review and comment on this undertaking.     

An Interesting Property of the Sample Mean under a First-Order Autoregressive Model

The unweighted sample mean is examined as an estimator of the population mean in a first-order autoregressive model. It is demonstrated that the precision of this estimator deteriorates as the number of equally spaced observations taken within a fixed time interval increases.     

Frequency of Selecting Noise Variables in Subset Regression Analysis: A Simulation Study

This article presents the results of a simulation study of variable selection in a multiple regression context that evaluates the frequency of selecting noise variables and the bias of the adjusted R ² of the selected variables when some of the candidate variables are authentic. It is demonstrated that for most samples a large percentage of the selected variables is noise, particularly when the number of candidate variables is large relative to the number of observations. The adjusted R ² of the selected variables is highly inflated.     

In Search of the Optimum Harvey Wallbanger Recipe via Mixture Experiment Techniques

A Harvey Wallbanger is an alcoholic drink composed of three ingredients: orange juice, vodka, and Galliano. One of the authors (Sahrmann), a connoisseur of the libation, was perplexed upon discovering that different bartender handbooks listed different recipes for the drink. Determined to shed some light on this irksome problem, he issued invitations for an evening workshop session (party) to former and current attendees of an experimental-design training course taught within his company. A mixture experiment was designed and data collected using the class participants. This article describes the experimental design and the analysis of the data. The results of the experiment indicate that reducing the proportion of vodka produces better-flavored drinks. The results of the experiment were not entirely conclusive, however, so recommendations are made for future experimentation.