Announcement

Collapse
No announcement yet.
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Optimize by minimizing the value of an equation to get a parameter value for each observation

    Dear Everyone,

    Software Used: STATA 15.1

    I am trying to get a parameter value (R) for each observation by minimizing the following equation. I could not figure out the exact STATA code I should write to get my desired value. I used the excel solver to estimate the value (R) for your reference. I also put the data below. Please help me with your STATA code to solve the problem. I highly appreciate your help

    The equation to Solve (Here I want to get the value of R for each observation):

    Price2_Y0=(B0_T1+((FROE1_T1_Med-R)/(1+R))*B0_T1
    +((FROE2_T1_Med-R)/((1+R)^2))*B1_T1_Med
    +((FROE3_T1_Med-R)/((1+R)^3))*B2_T1_Med
    +((FROE4_T1_Med_I1-R)/((1+R)^4))*B3_T1_Med
    +((FROE5_T1_Med_I1-R)/((1+R)^5))*B4_T1_Med_I1
    +((FROE6_T1_Med_I1-R)/((1+R)^6))*B5_T1_Med_I1
    +((FROE7_T1_Med_I1-R)/((1+R)^7))*B6_T1_Med_I1
    +((FROE8_T1_Med_I1-R)/((1+R)^8))*B7_T1_Med_I1
    +((FROE9_T1_Med_I1-R)/((1+R)^9))*B8_T1_Med_I1
    +((FROE10_T1_Med_I1-R)/((1+R)^10))*B9_T1_Med_I1
    +((FROE11_T1_Med_I1-R)/((1+R)^11))*B10_T1_Med_I1
    +((FROE12_T1_Med_I1-R)/(R*(1+R)^11))*B11_T1_Med_I1)

    Sample Data with R-Value calculated using Excel Solver:
    obs B0_T1 Price2_Y0 B1_T1_Med B2_T1_Med B3_T1_Med B4_T1_Med_I1 B5_T1_Med_I1 B6_T1_Med_I1 B7_T1_Med_I1 B8_T1_Med_I1 B9_T1_Med_I1 B10_T1_Med_I1 B11_T1_Med_I1 FROE1_T1_Med FROE2_T1_Med FROE3_T1_Med FROE4_T1_Med_I1 FROE5_T1_Med_I1 FROE6_T1_Med_I1 FROE7_T1_Med_I1 FROE8_T1_Med_I1 FROE9_T1_Med_I1 FROE10_T1_Med_I1 FROE11_T1_Med_I1 FROE12_T1_Med_I1 R 1 2 3 4 5 6 7 8 9 10 11 12 Sum dif
    1 12.04 17.5 12.96 14.11 15.46 17.09186 19.06786 21.46758 24.39325 27.97684 32.38978 37.85617 44.67083 0.070988 0.081502 0.087322 0.095476 0.10363 0.111784 0.119937 0.128091 0.136245 0.144399 0.152553 0.160707 11% -0.4457 -0.3212 -0.25475 -0.16857 -0.08567 -0.00377 0.079354 0.166052 0.258872 0.360704 0.474932 5.399746 17.5 -3.5E-06
    2 4.1943 10.61 -2.66464 -9.81995 -17.441 -25.5259 -31.7687 -34.3922 -32.9443 -28.2985 -22.0324 -15.6856 -10.2866 -0.60796 -0.1721 -0.10321 -0.07481 -0.04641 -0.01802 0.01038 0.038776 0.067172 0.095568 0.123965 0.152361 10% -2.69333 0.594159 1.484183 2.062363 2.295877 2.08637 1.546039 0.9009 0.352807 -0.00055 -0.16366 -2.04941 10.61005 4.7E-05
    3 53.42 168.11 63.08794 74.17822 86.74057 100.6832 116.0122 132.7046 150.7046 169.9214 190.2273 211.4572 233.4098 0.154071 0.150314 0.145607 0.139226 0.132844 0.126463 0.120082 0.113701 0.10732 0.100939 0.094558 0.088177 6% 4.80285 5.145318 5.419362 5.544526 5.595282 5.5635 5.442793 5.228879 4.919875 4.516513 4.022248 58.48874 168.1099 -0.00012
    4 12.6785 39.26 12.364 11.99335 11.61146 11.22855 10.84555 10.46336 10.08285 9.704834 9.330102 8.959396 8.593415 0.045293 0.055031 0.058563 0.060722 0.062881 0.06504 0.067199 0.069358 0.071517 0.073675 0.075834 0.077993 2% 0.331172 0.433054 0.452443 0.453282 0.452393 0.449901 0.445931 0.440604 0.434044 0.42637 0.417699 21.84461 39.26001 5.8E-06
    5 11.24 52.87 13.16 15.37 17.89 20.72743 23.90499 27.44408 31.36423 35.68253 40.41294 45.56567 51.14654 0.145897 0.143787 0.140861 0.136893 0.132924 0.128956 0.124988 0.12102 0.117052 0.113084 0.109115 0.105147 5% 0.994257 1.080689 1.160364 1.225119 1.284677 1.337677 1.382758 1.418579 1.44386 1.457413 1.45817 27.38643 52.87 -3.7E-06
    Last edited by Nazmul Hasan; 09 Feb 2020, 14:03.
Working...
X