Homework Help is Here – Start Your Trial Now!
Math
Statistics
a.) Using the confidence interval approach, state and explain whether the variable 'AGE' is statistically significant or not. Use 5% level of significance, which give 1.96 critical value.

a.) Using the confidence interval approach, state and explain whether the variable 'AGE' is statistically significant or not. Use 5% level of significance, which give 1.96 critical value.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
QUESTION ONE The table below was extracted from Stata. It is an output of a regression that was conducted on EARNINGS in dollars (dependent variable), and the following as independent variables: AGE (years), S (years in school), MALE (dummy for male), LIBRARY, SIBLINGS (number of siblings), and ETHHISP (dummy for Hispanic respondents). Using the information in the table, answer the questions below: Source Model Residual Total EARNINGS AGE S MALE LIBRARY SIBLINGS ETHHISP cons SS 7454.91824 28115.9859 df 6 1242.48637 524 53.6564617 530 67.1149135 Coef. Std. Err. MS .3930994 .1467907 1.278186 .1407522 3.590323 .6458634 1.010765 .7641504 -.1085979 .1566326 -.404548 1.356467 -19.26833 5.088757 t Number of obs F (6, 524) Prob > F R-squared Adj R-squared Root MSE P>|t| 0.008 9.08 0.000 5.56 0.000 1.32 0.187 -0.69 0.488 -0.30 0.766 -3.79 0.000 531 23.16 0.0000 1.001678 2.321524 -.4904096 -.4163029 -3.069328 -29.2652 0.2005 7.3251 [95% Conf. Interval] 1.554694 4.859123 2.51194 .1991072 2.260233 -9.271462
Transcribed Image Text:QUESTION ONE The table below was extracted from Stata. It is an output of a regression that was conducted on EARNINGS in dollars (dependent variable), and the following as independent variables: AGE (years), S (years in school), MALE (dummy for male), LIBRARY, SIBLINGS (number of siblings), and ETHHISP (dummy for Hispanic respondents). Using the information in the table, answer the questions below: Source Model Residual Total EARNINGS AGE S MALE LIBRARY SIBLINGS ETHHISP cons SS 7454.91824 28115.9859 df 6 1242.48637 524 53.6564617 530 67.1149135 Coef. Std. Err. MS .3930994 .1467907 1.278186 .1407522 3.590323 .6458634 1.010765 .7641504 -.1085979 .1566326 -.404548 1.356467 -19.26833 5.088757 t Number of obs F (6, 524) Prob > F R-squared Adj R-squared Root MSE P>|t| 0.008 9.08 0.000 5.56 0.000 1.32 0.187 -0.69 0.488 -0.30 0.766 -3.79 0.000 531 23.16 0.0000 1.001678 2.321524 -.4904096 -.4163029 -3.069328 -29.2652 0.2005 7.3251 [95% Conf. Interval] 1.554694 4.859123 2.51194 .1991072 2.260233 -9.271462
a.) Using the confidence interval approach, state and explain whether the variable 'AGE' is statistically significant or not. Use 5% level of significance, which give 1.96 critical value. b.) Use data in the table to calculate the R-squared and comment on the size of the value. c.) A sample of 5000 people from Eastern Province found that they eat an average of 7 'Mbeba' (rabbits) with a variance of 400. Using both, the one-sided and the two-sided approach, test the hypothesis that the population average is 6 'Mbeba' (rabbits). Use either 95% or 99% confidence level. d.) It is argued that when using the R-squared (r²), there is a temptation to keep on increasing/adding the number of regressors. Using appropriate expressions, explain this argument and offer a remedy. e) Use the figure below to explain the Classical Linear Regression assumption of strict exogeneity.
Transcribed Image Text:a.) Using the confidence interval approach, state and explain whether the variable 'AGE' is statistically significant or not. Use 5% level of significance, which give 1.96 critical value. b.) Use data in the table to calculate the R-squared and comment on the size of the value. c.) A sample of 5000 people from Eastern Province found that they eat an average of 7 'Mbeba' (rabbits) with a variance of 400. Using both, the one-sided and the two-sided approach, test the hypothesis that the population average is 6 'Mbeba' (rabbits). Use either 95% or 99% confidence level. d.) It is argued that when using the R-squared (r²), there is a temptation to keep on increasing/adding the number of regressors. Using appropriate expressions, explain this argument and offer a remedy. e) Use the figure below to explain the Classical Linear Regression assumption of strict exogeneity.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS