•  Hypothesis tests for ARCH effects: Wellknown McLeod and Lagrange Multiplier tests are provided
for this purpose.

•  Estimation of ARCH and GARCH model parameters by different implementations (BHHH, BFGS, and
NewtonRaphson) of the maximum likelihood method with various options for convergence criteria.

•  Forecasts for error variances using the parameter estimates.

•  The JarqueBera test for normality of errors.

•  SYSTAT 13 finds best models (choice of predictors) for a given number of predictors, the number
varying from one to the total number available in the data set.

•  The best model is identified by various criteria such as R2, Adjusted R2, Mallow’s Cp, MSE, AIC, AICC
and BIC.

•  SYSTAT 13 then offers to carry out a complete regression analysis on the data set chosen by the
user (same as the training set or different) on the best model selected by any of the criteria.

•  CFA can be used to test the postulated factor structure based on a priori knowledge about the
relationship between the observed (manifest) variables and the latent variables.

•  With CFA, SYSTAT allows users to specify the observed variables, a set of latent variables, and their
variancecovariance structure.

•  A path diagram can be used to specify the hypothesized model.

•  SYSTAT 13 estimates the parameters of the CFA model using one of the following estimation options:
Maximum likelihood, Generalized leastsquares, and Weighted leastsquares.

•  SYSTAT 13 provides a wide of variety of goodnessoffit indices to measure the degree of
conformity of the postulated factor model to the data. Some of the wellknown indices provided are:
GoodnessofFit Index (GIF), Root Mean Square Residual (RMR), Parsimonious Goodnessof fit Index
(PGFI), AIC, BIC, McDonald’s measure of Certainty, and Nonnormal Fit Index (NNFI).

•  The order of the polynomial can be up to 8.

•  Besides fitting polynomials in standard forms, SYSTAT 13 provides orthogonal polynomial regression.

•  SYSTAT 13 reports goodnessof fitstatistics (R2 and adjusted R2) and ANOVA with pvalues for all
models, starting from the order specified by the user, down to linear (order = 1).

•  SYSTAT 13 provides confidence and prediction interval plots along with estimates, and a plot of
residuals versus predicted values, as Quick Graphs.
