In the regression model Y, =a, +aX, +a,D, +a,(X, *D,)+ X is a continuous variable and D is dummy variable. To test that the two regressions are identical, you must use the a. t-statistics separately for az=0, az=0, b. t-statistics separately for az=0 C. F-statistics for the joint hypothesis that ao=0, a;=0 d. F-statistics for the joint hypothesis that az=0, a=0

In the regression model Y, =a, +aX, +a,D, +a,(X, *D,)+ X is a continuous variable and D is dummy variable. To test that the two regressions are identical, you must use the a. t-statistics separately for az=0, az=0, b. t-statistics separately for az=0 C. F-statistics for the joint hypothesis that ao=0, a;=0 d. F-statistics for the joint hypothesis that az=0, a=0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The estimated regression equation describing the relationship between the price (P) charged by a monopolist for his product and the quantity (Q) of the product purchased by consumers is given by: Q = 500,000 - 100 P. Results of a t-test reject the null hypothesis for the coefficient multiplying price. The correct interpretation of the B₁ coefficient (equal to -100) is: A) when price is equal to zero, then the average quantity sold is equal to 100 B) an increase in price by one dollar on average is associated with a 100 unit decrease in quantity C) a 1% increase in price is associated with a 100% decrease in quantity OD) an increase in quantity by one unit on average is associated with a $100 decrease in price
Answer correctly fast
E3
A researcher wants to test the relationship between the number of years of formal education received (X) and the average weekly earnings (Y) (measured in hundred dollars). A report released by a government agency suggests that the average weekly earnings of individuals with no formal education is equal to $545. The researcher wants to test whether the average weekly earnings with no formal education is $545 or greater than that. He collects data from a sample of 120 individuals and estimates the following regression function: Y-6.91+2.30X, (1.25) (4.25) where , is the predicted value of the weekly earnings for the individual and the standard errors for the coefficients appear in parenthesis. The f-statistic for the test the researcher wants to conduct will be (Round your answer to two decimal places)
You estimated a linear regression model with 3 explanatory variables using a sample of 29 observations. You are asked to test the overall significance of the model.the F-statistics calculated is equal to 2.567 and the F-critical at 5% level is 3.028. The p-value of the test can be expressed as: Select one: O a. P(F(3,25)<=2.567) O b. 1-P(F(3,25)<=2.567) O c. P(F(3,25)<3.028) O d. 1-P(F(3,25)<33.28)
1. Consider the following regression model y = x3 + u. (1) Let 3 denote the Ordinary Least Squares (OLS) estimator of B. The so-called Gauss- Markov assumptions are: • MLR.1: The true model in the population is given by (1). • MLR.2: We have a random sample of n observations {(ri, Yi), i = 1, 2, .., n} following the population model in (1). .... • MLR.3: No one explanatory variable can be written as a linear combination of the remaining explanatory variables that is, there is no perfectcollinearity. • MLR.4: In the population, the error u has an expected value of zero given any values of the explanatory variables, that is Elu|x] = 0. • MLR.5: In the population, the error u has the same variance given any values of the explanatory variables, that is Var[u|x] = o? , an unknown finite, positive constant. In the following scenarios, state whether B is an unbiased and consistent estimator of 3, and provide a brief justification for your answer in each case - but no formal mathematical…
A multiple regression of y on a constant x and x2 produces the following results: ŷ = 4 + 0.4x + 0.9x2, R2 8/60, e'e 520, n = 29, %3D 29 X'X %3D 50 10 10 80 Test the hypothesis that the two slopes sum to 1.
Finally consider the regression model with an extra covariate: Yi = Bo + B1x1i + B2x2; + €; Let 32=3.13, it's standard error s.e.(B1)=1.12 and assume n=811. Based only on this information, decide if it is useful to include X2i in the regression model. Carefully showing every step of your hypothesis test and explaining your answer. Use signifi- cance level a = .05.
number 1 please
In multiple OLS regressions, if you are using power terms to fit for nonlinearity, how do you interpret the coefficients? For example: Yi=B1+B2X+B3X^2+Ui and B2 and B3 are both significant.
Q. 30 The t test can be used for testing the JOINT significance of ALL explanatory variables x2, x3, and x4 in a multiple regression model. O True O False
We have a pooled cross section of data with data from 2009 and 1999 on women’s wages and their years of education. We consider the model: wage = β0 + β1Year2009 + β2educ + β3Year2009 × educ + u where wage is the hourly wage and educ is the years of education. Year2009 is a dummy variable equal to 1 in the year 2009 and 0 otherwise. Which of the following measures the change in the effect of education on the wage between 1999 and 2009? a) β0 b) β1 + β2 + β3 c) none of these answers d) β1 + β3 e) β3