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# PS8.4, for the White's test of Example 8.5 
open data8-1
genr LNSALARY=ln(SALARY)
# generate squares and cross-products 
genr YRS2 = YEARS*YEARS
genr YRS3 = YRS2*YEARS
genr YRS4 = YRS2*YRS2
# estimate log quadratic model 
ols LNSALARY const YEARS YRS2 
# save squared residuals 
genr usq=$uhat*$uhat
# auxiliary regression 
ols usq const YEARS YRS2 YRS3 YRS4 
# compute LM test statistic and p-value 
genr LM=$nrsq
pvalue X 4 LM