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Just parts d,e anf f of question 1 d)  We conduct a simple regression of size on hhinc, now using robust standard errors. The regression output is reported in Table 2. Why are the estimated coefficients in Table 2 equal to the estimated coefficients in Table 1? Do the conclusions on the statistical significance at 5% of the coefficient of hhinc change between Tables 1 and 2? e) Now, using both the critical value and the p-value, test whether the coefficient of hhinc is statistically significant at 1%, by using the results in Table 1. Repeat the test by using the results in Table 2. Compare the results based on Table 1 with the results based on Table 2. Consider the results in Table 2. Compute the 99% confidence interval for hhinc. f)  Consider the results in Table 2.How would you decide whether 0 is contained in the 99% confidence interval for the coefficient of hhinc, without actually computing the confidence interval?

Just parts d,e anf f of question 1 d)  We conduct a simple regression of size on hhinc, now using robust standard errors. The regression output is reported in Table 2. Why are the estimated coefficients in Table 2 equal to the estimated coefficients in Table 1? Do the conclusions on the statistical significance at 5% of the coefficient of hhinc change between Tables 1 and 2? e) Now, using both the critical value and the p-value, test whether the coefficient of hhinc is statistically significant at 1%, by using the results in Table 1. Repeat the test by using the results in Table 2. Compare the results based on Table 1 with the results based on Table 2. Consider the results in Table 2. Compute the 99% confidence interval for hhinc. f)  Consider the results in Table 2.How would you decide whether 0 is contained in the 99% confidence interval for the coefficient of hhinc, without actually computing the confidence interval?

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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  1.  Just parts d,e anf f of question 1

d)  We conduct a simple regression of size on hhinc, now using robust standard errors. The regression output is reported in Table 2. Why are the estimated coefficients in Table 2 equal to the estimated coefficients in Table 1? Do the conclusions on the statistical significance at 5% of the coefficient of hhinc change between Tables 1 and 2?

e) Now, using both the critical value and the p-value, test whether the coefficient of hhinc is statistically significant at 1%, by using the results in Table 1. Repeat the test by using the results in Table 2. Compare the results based on Table 1 with the results based on Table 2. Consider the results in Table 2. Compute the 99% confidence interval for hhinc.

f)  Consider the results in Table 2.How would you decide whether 0 is contained in the 99% confidence interval for the coefficient of hhinc, without actually computing the confidence interval?

 

 

Table 1 regress size hhinc Source SS df MS Number of obs 5,407 F(1, 5405) 1613.34 Model 263141566 1 263141566 Prob > F 0.0000 Residual R-squared = Adj R-squared %3D Total 1.1447e+09 5,406 211749.457 Root MSE %3D size Coefficient Std. err. P>|t| [95% conf. interval] hhinc .0082545 .0002055 40.17 0.000 .0078516 .0086574 _cons 800.9835 9.404917 85.17 0.000 782.5461 819.4209 c) Compute the Sum of Squared Residuals (SSR), R-squared (R^2), and Root Mean Squared Error from Table 1 (Root MSE). Interpret the R-squared.
Transcribed Image Text:Table 1 regress size hhinc Source SS df MS Number of obs 5,407 F(1, 5405) 1613.34 Model 263141566 1 263141566 Prob > F 0.0000 Residual R-squared = Adj R-squared %3D Total 1.1447e+09 5,406 211749.457 Root MSE %3D size Coefficient Std. err. P>|t| [95% conf. interval] hhinc .0082545 .0002055 40.17 0.000 .0078516 .0086574 _cons 800.9835 9.404917 85.17 0.000 782.5461 819.4209 c) Compute the Sum of Squared Residuals (SSR), R-squared (R^2), and Root Mean Squared Error from Table 1 (Root MSE). Interpret the R-squared.
Table 2 • regress size hhinc, robust Linear regression Number of obs 5,407 F(1, 5405) 134.25 %3D Prob > F 0.0000 %3D R-squared 0.2299 Root MSE 403.86 Robust size Coefficient std. err. P>|t| [95% conf. interval] hhinc .0082545 .0007124 11.59 _cons 800.9835 25.72644 31.13 e) Now, using both the critical value and the p-value, test whether the coefficient of hhinc is statistically significant at 1%, by using the results in Table 1. Repeat the test by using the results in Table 2. Compare the results based on Table 1 with the results based on Table 2.
Transcribed Image Text:Table 2 • regress size hhinc, robust Linear regression Number of obs 5,407 F(1, 5405) 134.25 %3D Prob > F 0.0000 %3D R-squared 0.2299 Root MSE 403.86 Robust size Coefficient std. err. P>|t| [95% conf. interval] hhinc .0082545 .0007124 11.59 _cons 800.9835 25.72644 31.13 e) Now, using both the critical value and the p-value, test whether the coefficient of hhinc is statistically significant at 1%, by using the results in Table 1. Repeat the test by using the results in Table 2. Compare the results based on Table 1 with the results based on Table 2.
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