Initially we created a dummy variable, say HSEducated, that takes values equal to 1 if a state has more than 50% of high school graduates and 0 otherwise.Question asks to reverse it, and construct a new confidence interval. Suppose that you regress Murder on a dummy variable HSUneducated that equals 1 if the state hasless than 50% high school graduates, and O otherwise. You expect the estimated Constant to equaland the estimated coefficient on HSUneducated to equal6.11; 4.5510.66,-4.55-10.66; 4.55-6.11; -4.55 murder and IlliteracyIlliteracyConstantObservationsR2Residual Std. Error=====Note:murder and HSEducatedHSEducatedEducatedConstantObservationsR2Residual Std. Error======Dependent variable:Note:Murder4.257(0.527)2.397(0.780)500.4942.653MurderDependent variable:-4.554(0.980)10.657(0.835)ΝΑ500.3133.091=====ΝΑ

Answered: Initially we created a dummy variable,…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Related questions

Question

Initially we created a dummy variable, say HSEducated, that takes values equal to 1 if a state has more than 50% of high school graduates and 0 otherwise.

Question asks to reverse it, and construct a new confidence interval.

Suppose that you regress Murder on a dummy variable HSUneducated that equals 1 if the state has
less than 50% high school graduates, and O otherwise. You expect the estimated Constant to equal
and the estimated coefficient on HSUneducated to equal
6.11; 4.55
10.66,-4.55
-10.66; 4.55
-6.11; -4.55

murder and Illiteracy
Illiteracy
Constant
Observations
R2
Residual Std. Error
=====
Note:
murder and HSEducated
HSEducatedEducated
Constant
Observations
R2
Residual Std. Error
======
Dependent variable:
Note:
Murder
4.257
(0.527)
2.397
(0.780)
50
0.494
2.653
Murder
Dependent variable:
-4.554
(0.980)
10.657
(0.835)
ΝΑ
50
0.313
3.091
=====
ΝΑ

Expert Solution

Step 1

From the given information,

The dependent variable is Murder.

The independent dummy variable is 'HSUneducated'.

$H S U n e d u c a t e d = \{\begin{cases} 1, i f t h e s t a t e h a s l e s s t h a n 50 % h i g h s c h o o l g r a d u a t e s \\ 0, o t h e r w i s e \end{cases}$