Determine the best order for the model - run a model of the


Open and run the (data) script file mind.asc to create the data set MIND, and give the names X1, X2, X3 and Y to its 4 columns. The goal is to regress the last variable Y against the first three columns using projection pursuit.

1. Determine the best order for the model.

2. Run a model of the order determined in question 1 and give the (directional) unit vectors found by the program. Comment.

3. Plot the functions ? found by the program. Can you make a guess at the functional dependence of Y upon X1. X2 and X3?

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Financial Econometrics: Determine the best order for the model - run a model of the
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