Described here are the theoretmal development and computer implementation of a procedure that generates test problems for L~ esth-nation of the linear model y= Xfl + u. The generation procedure allows the user flembdlty m specifying the problem dimensions, the LI solution vector fl*, the distribution of the observed residuals ~, as well as the column rank, row repetitions, and degree of degeneracy of the matrix X The user can also specify the distributional form, mean, and variance for each independent variable An lraportant feature of the generator is that any problem it creates is guaranteed to have a umque solutmn ~ whenever X has full rank