/*
Work with the file homework8.dta.

Write your answer in a DO-file, commenting on your steps as you go through your steps.
Email your DO-file to me before class on Monday, November 21.

1. The dataset contains a y variable that you are trying to explain and numerous x variables that might be 
predictor variables of y. Use a likelihood-ratio test to find the "best" model predicting y.

2. Once you have chosen your "best" model, check the residuals of your model.

3. Plot y against the predicted values of y. Give a qualitative assessment of whether your model is homoskedastic.

4. Finally, interpret the coefficients of your model.

If you use the cd command to your working directory as your first step (replacing my directory information below
with your own), you can use this DO-file to start your homework. 
*/

cd "/home/ckbutler/Dropbox/581/2011Fall"
use homework8.dta