14. Testing multiple linear restrictions with the F testSuppose a data set of 350 observations (N=350) was analyzed using OLS to examine the factors that influence the salaries of professional baseballplayers. The regression results are as follows, with standard errors in parentheses:log(salary) = 12.1 + 0.08 years + 0.02 gamesyr + 0.0007 bavg + 0.02 hrunsyr + 0.012 rbisyr(0.25)(0.025)(0.004)(0.002)(0.015)(0.008)wheresalary= total salary in 2003years = years in the leaguebavg = career batting averagegamesyr = average games played per yearhrunsyr = home runs per yearrbisyr= runs batted in per yearR = 0.611SSR = 199.32 log(salary) — 12.2 + 0.09 years + 0.025 датesyr(0.026)(0.13)(0.002)whereSSR (restricted) = 212.3R (restricted) = 0.586Since the unrestricted model hasdegrees of freedom, while the restricted model hasdegrees of freedom, you knowthat the number of exclusion restrictions must be q=Suppose you would like to test your original null hypothesis using an F-test at the 99% level.Note: The critical value for the F statistic with this number of exclusion restrictions, with greater than 120 observations, at the 99% level, is 3.78.After calculating the F-statistic and comparing it to the critical value, youthe null hypothesis.

Given: Number of independent variables in Unrestricted model k=5 Number of independent variables is…

log(salary) = 12.2+ 0.09 years+0.025 gamesyr (0.026) (0.13) (0.002) where SSR (restricted) = 212.3 R (restricted) = 0.586 Since the unrestricted model has degrees freedom, while the restricted model has degrees of freedom, you know that the number of exclusion restrictions must be q= Suppose you would like to test your original null hypothesis using an F-test at the 99% level. Note: The critical value for the F statistic with this number of exclusion restrictions, with greater than 120 observations, at the 99% level, is 3.78. After calculating the F-statistic and comparing it to the critical value, you the null hypothesis.

log(salary) = 12.2+ 0.09 years+0.025 gamesyr (0.026) (0.13) (0.002) where SSR (restricted) = 212.3 R (restricted) = 0.586 Since the unrestricted model has degrees freedom, while the restricted model has degrees of freedom, you know that the number of exclusion restrictions must be q= Suppose you would like to test your original null hypothesis using an F-test at the 99% level. Note: The critical value for the F statistic with this number of exclusion restrictions, with greater than 120 observations, at the 99% level, is 3.78. After calculating the F-statistic and comparing it to the critical value, you the null hypothesis.

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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