An independent researcher is interested in studying the factors that affects the educational attainment of an individual (Y). For her study she chooses educational attainment of the individual's mother (X1) and the annual income of the individual's family (X2) as regressors. The researcher randomly selects a sample of 250 individuals and estimates the following regression function: Y=9.00 +2.12X₁ +2.12X2. (0.56) (1.54) She wants to test whether or not a change in (✗₁) significantly affects (Y) keeping the annual income of the individual's family constant. The t-statistic for testing the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 will be (Round your answer to two decimal places.) If the researcher uses a 5% significance level, we the null hypothesis. She now includes the educational attainment of the individual's father (X3) as the third regressor in the regression equation. The newly estimated regression equation is: ŷ₁ = 8.51 +1.91X₁ +2.01X2 +0.98X3. (2.20) (2.14) (0.71) With the revised estimates she again tests the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 keeping the annual income of the individual's family and the educational attainment of the individual's father constant. The t-statistic for the test the researcher wants to conduct will be (Round your answer to two decimal places.) Based on the value of the test statistic at the 5% significance level, we the null hypothesis.
An independent researcher is interested in studying the factors that affects the educational attainment of an individual (Y). For her study she chooses educational attainment of the individual's mother (X1) and the annual income of the individual's family (X2) as regressors. The researcher randomly selects a sample of 250 individuals and estimates the following regression function: Y=9.00 +2.12X₁ +2.12X2. (0.56) (1.54) She wants to test whether or not a change in (✗₁) significantly affects (Y) keeping the annual income of the individual's family constant. The t-statistic for testing the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 will be (Round your answer to two decimal places.) If the researcher uses a 5% significance level, we the null hypothesis. She now includes the educational attainment of the individual's father (X3) as the third regressor in the regression equation. The newly estimated regression equation is: ŷ₁ = 8.51 +1.91X₁ +2.01X2 +0.98X3. (2.20) (2.14) (0.71) With the revised estimates she again tests the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 keeping the annual income of the individual's family and the educational attainment of the individual's father constant. The t-statistic for the test the researcher wants to conduct will be (Round your answer to two decimal places.) Based on the value of the test statistic at the 5% significance level, we the null hypothesis.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
PLEASE ANSWER CORRECTLY FULLY
MAKE SURE THE ANSWER IS 100% RIGHT
NO MISTAKES PLEASE
Transcribed Image Text:An independent researcher is interested in studying the factors that affects the educational attainment of an individual (Y). For her study she chooses educational attainment of the individual's
mother (X1) and the annual income of the individual's family (X2) as regressors. The researcher randomly selects a sample of 250 individuals and estimates the following regression function:
Y=9.00 +2.12X₁ +2.12X2.
(0.56) (1.54)
She wants to test whether or not a change in (✗₁) significantly affects (Y) keeping the annual income of the individual's family constant.
The t-statistic for testing the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 will be
(Round your answer to two decimal places.)
If the researcher uses a 5% significance level, we
the null hypothesis.
She now includes the educational attainment of the individual's father (X3) as the third regressor in the regression equation.
The newly estimated regression equation is:
ŷ₁ = 8.51 +1.91X₁ +2.01X2 +0.98X3.
(2.20) (2.14) (0.71)
With the revised estimates she again tests the hypothesis Ho: B₁ = 0 vs. H₁: B₁ #0 keeping the annual income of the individual's family and the educational attainment of the individual's father
constant.
The t-statistic for the test the researcher wants to conduct will be
(Round your answer to two decimal places.)
Based on the value of the test statistic at the 5% significance level, we
the null hypothesis.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education