A researcher is studying the effect of parents' level of education on educationalachievement of individuals. Using data on completed years of education (educ), mother'slevel of education (motheduc), father's level of education (fatheduc), a measure of cognitiveability (abil), and logarithm of family income (l.income), the researcher estimates 4 models.Table (1) shows the OLS estimates for each model, with standard errors in parenthesesunderneath each coefficient. The dependent variable in all the models is educ.Model 1Model 2Model 3Model 4Independent variablesL.income(0.2)0.15motheduc0.270.180.17(0.02)(0.03)0.11(0.02)0.52(0.03)0.11(0.02)0.39(0.03)0.10(0.02)0.35fatheducabil0.53(0.03)0.09(0.01)8.74(0.03)(0.03)(0.03)0.05abil_squaredww(0.01)8.746.94(0.32)1230Intercept8.4(0.12)12303899.970.38Table (1)(0.31)1230(0.31)1210NSSRR-squared3999.243785.243541.20.350.450.49a. How the degrees of freedom in model (3) compare to the degrees of freedom inmodel (4)? Explain.b. Why did the coefficient of motheduc decrease after adding variable fatheduc to theregression? Discuss and if necessary, incorporate the Gauss-Markov assumptions inyour answer.

Here observing table and values we need to find two answers. i) how we can campare degrees of…

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A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Identify two ways in which multiple regression and logistic regression are similar; and two ways in which they differ.
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Would you include ros in a final model explaining CEO compensation in terms of firm performance?
A researcher interested in explaining the level of foreign reserves for the country of Barbadosestimated the following multiple regression model using yearly data spanning the period 2001 to 2016: ??=?+????+????+????Where FR = yearly foreign reserves ($000’s), OIL = annual oil prices, EXP = yearly total exports ($000’s) and FDI = annual foreign direct investment ($000’s). The sample of data was processed using MINITAB and the following is an extract of the output obtained:Predictor Coef StDev t-ratio p-value Constant 5491.38 2508.81 2.1888 0.0491OIL 85.39 18.46 4.626 0.0006EXP -377.08 112.19 * 0.0057FDI -396.99 160.66 -2.471 ** S = 2.45 R-sq = 96.3% R-sq(adj) = 95.3%Analysis of VarianceSource DF SS MS F pRegression 3 1991.31 663.77 ? ??Error 12 77.4 6.45Total 15 Perform the F Test making sure to state the null and alternative hypothesis. f) Given an interpretation of the term “R-sq” and comment on its value.
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