To make the same structures between (6) and (7), a new artificial variable [x.sub.4] is introduced into system (6) and set [[??].sub.4] (t) = 0.
Analogously, as in Section 3.1, a new artificial variable [x.sub.4] is given and [[??].sub.4] (t) = 0, by defining the synchronization error in the following way:
with [TA.sub.i], total accruals; [A.sub.i], total assets; [CF.sub.i], cash flows; i, a firm; and [[??].sub.i], the estimated artificial variable for the endogenous j variable.
This test leads to the inclusion of w artificial variables in the regression, one for each endogenous variable.
While devising the initial tableau for the objective equation, with large negative number, the computer iteration denoted the profit coefficient for each artificial variable as -M.
In this paper, he presented a new approach to the problem of initialization and pivoting rules as the algorithm was free from any artificial variables and artificial constraints, which were known as the big-M technique.
Moreover, according to our previous developments, we expect a high positive correlation between ([^.[beta].sub.i] - [[^.[beta]]*.sub.i])$, that is the estimated error on the coefficient of factor i, and [[^.[beta]].sub.i], the estimated coefficient of the corresponding artificial variable
Artificial smoothing is based on artificial variables
(accounting decisions), not real variables (business decisions) (Koch, 1981).
In Section 4.3, we apply this method to artificial variables
computed from the measures of water flow in order to obtain interesting descriptions of water flow rate peak time shift.
In the logit model, what is more aimed in the artificial variables
is the usage of the concept of these variables' marginal effect.
The big M method and two -stage way are usually adopted to construct a unit matrix as a initial basis through to introduce some artificial variables
first, then make the iteration of simplex method.