The video shows how to do a Chow test for regression stability with NumXL 1.60 in Microsoft Excel
Hello and welcome to NumXL 1.60 tutorials. In this tutorial, we will demonstrate the steps to carry a Chow test for regression stability. We will use a sample data gathered from 20 different sales persons. The regression model attempts to explain and predict sales person weekly
First, select a cell in your worksheet where you wish the analysis output located. Next, locate the Statistical test icon in NumXL tab, and from the drop-down, click on regression stability test.
The regression stability test Wizard pops up. For each data set, select the dependent variable (Y) and explanatory variables (X) cells range.
For the intercept/constant, if your model forces the intercept to be set at fixed value, then enter it here. Otherwise, leave it blank to indicate that it is a parameters calculated from the data set. Once the data sets are selected, the "Options" and "Missing values" become available. Click on "Option tab"
The Options tab show methods supported. Currently, we implemented Chow Test.
In the Missing Values tab, leave the default selection - remove observations with any missing value (in X or Y). Now, click OK to display the test result.
here you go, the test table show the test stat (score), p-value and compare it against the significance level. In this example, the regression model seems to be stable over the sample data.