The use of dummy variables to compute predictions, prediction errors, and confidence intervals

摘要: Abstract This paper presents a method for computing predictions, prediction error variances, and confidence intervals, which can be implemented with any regression program. It demonstrates that estimated an augmented data set, obtained by (1) combining n sample points r forecast points, (2) including dummy variables (each equalling one only the corresponding point), will yield variable coefficients variances equal errors variances. Since most programs lack special routines to calculate these magnitudes, while manual computation is cumbersome, proposed of considerable practical value.