Maximum Likelihood Estimation in Stata
This is a short post on the mechanics of maximum likelihood estimation in Stata
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webuse auto
reg price mpg headroom
webuse auto (1978 Automobile Data) reg price mpg headroom Source | SS df MS Number of obs = 74 -------------+---------------------------------- F(2, 71) = 10.44 Model | 144280501 2 72140250.4 Prob > F = 0.0001 Residual | 490784895 71 6912463.32 R-squared = 0.2272 -------------+---------------------------------- Adj R-squared = 0.2054 Total | 635065396 73 8699525.97 Root MSE = 2629.2 ------------------------------------------------------------------------------ price | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- mpg | -259.1057 58.42485 -4.43 0.000 -375.6015 -142.6098 headroom | -334.0215 399.5499 -0.84 0.406 -1130.701 462.6585 _cons | 12683.31 2074.497 6.11 0.000 8546.885 16819.74 ------------------------------------------------------------------------------