Running the Analysis

  1. To run a Two-Stage Least-Squares Regression analysis, from the menus choose:

    Analyze > Regression > 2 Stage Least Squares...

    Figure 1. Two-Stage Least-Squares Regression main dialog box
    Two-Stage Least-Squares Regression main dialog box
  2. Select Special offer purchases as the dependent variable.
  3. Select CD purchases, Book purchases, Appliance offer, and Checks offer as explanatory variables.
  4. Select Appliance offer, Checks offer, and Log of CD club discount through LAGS(buybk,1) as instrument variables.
  5. Click OK.

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