Hausman Test

[Anna Ceddia]

Hi I have a general question on the Hausman test. I entered the command "haumsman re fe, sigmamore" after I saved the errors in this order. I got Prob>chi2 of 0.0003. How can I interpret this? In this case, should I use the random effect?

[Carlo Lazzaro]

Anna:
welcome to this forum.
Please post your future queries on the General forum, as this one is for practising purposes only.
That said. the correct sequence to invoke -hausman- is:

haumsman fe re, sigmamore

.

Please note that, due to the null to be tested, -fe- should always preceeds -re-.