- Run the multiple regression like usual
- Save the leverage plots
- this generates 2 columns for each of your leverage plots
- One column is the Y of the plot the other is the X of the plot
- Check this by doing a simple regression.

- Center the X and Y for the variable you want to estimate
- You will have to create new columns
- Just subtract off the mean
- Now you can compute the beta-hat by averaging the product of these two columns divided by the average of the square of the X column. Check this by creating a product column and the square column averaging and dividing.

- Compute the variance by sum(LX
^{2}LY^{2})/sum(LX^{2})- Use the product column you create above, call it P.
- sum(p
^{2}) is simple the mean squared plus the variance of P. - A simillar argument works for LX.
- Alternatevly you can use a formula: sum(p
^{2})sum(LX^{2})

Last modified: Thu Apr 19 10:39:30 2001

*
*