To replicate this, please see the code below:
Code:
clear
set seed 123
set obs 1000
gen x=rnormal()
gen one=1
reg one x, noconstant
I can understand the beta coeffients as the least squares estimate in this setup. But R-square has SS(Total) in the denominator, which is 0 in this setup. Then, what is stata outputting here?
There are some other related issues I have with this output but I think I can resolve them if I understand what Stata is doing to compute R-square.
Code:
clear
set seed 123
set obs 1000
gen x=rnormal()
gen one=1
reg one x, noconstant
I can understand the beta coeffients as the least squares estimate in this setup. But R-square has SS(Total) in the denominator, which is 0 in this setup. Then, what is stata outputting here?
There are some other related issues I have with this output but I think I can resolve them if I understand what Stata is doing to compute R-square.
