Consider a model with an interaction term between being female and being married. The dependent variable is the log of the hourly wage: log(wage) = 0.151 -0.038 female + 0.1 married – 0.301 female* married +0.079 educ + 0.027 exper +0.029 tenure (0.072) (0.056) (0.055) (0.007) (0.005) (0.007) n =536, R2 =0.461 Numbers in parantheses are standard errors of coefficients. Given the estimation result and the observation number fill in the blanks below which aim at discussing the statistical significance of variables. The test statistic of the interaction term is The critical value at 1% significance level is Then the interaction term statistically significant at 1% significance level. (Hint: to fill the blank make a choice between "is" and "is not".)

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Consider a model with an interaction term between being female and being married. The dependent variable is the log of the
hourly wage:
log(wage) = 0.151 - 0.038 female + 0.1 married - 0.301 female* married + 0.079 educ + 0.027 exper+0.029 tenure
(0.072)
(0.056)
(0.055)
(0.007)
(0.005)
(0.007)
n = 536, R2 = 0.461
Numbers in parantheses are standard errors of coefficients. Given the estimation result and the observation number fill in the
blanks below which aim at discussing the statistical significance of variables.
The test statistic of the interaction term is
The critical value at 1% significance level is
Then the interaction term
statistically significant at 1% significance level. (Hint: to fill the blank
make a choice between "is" and "is not".)
Transcribed Image Text:Consider a model with an interaction term between being female and being married. The dependent variable is the log of the hourly wage: log(wage) = 0.151 - 0.038 female + 0.1 married - 0.301 female* married + 0.079 educ + 0.027 exper+0.029 tenure (0.072) (0.056) (0.055) (0.007) (0.005) (0.007) n = 536, R2 = 0.461 Numbers in parantheses are standard errors of coefficients. Given the estimation result and the observation number fill in the blanks below which aim at discussing the statistical significance of variables. The test statistic of the interaction term is The critical value at 1% significance level is Then the interaction term statistically significant at 1% significance level. (Hint: to fill the blank make a choice between "is" and "is not".)
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