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

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Differential Equations

Have you ever observed the movement of the satellites and rockets or how the planets go around the sun in their orbits? How will you determine their motion? Definitely they follow some scientific laws and these kinds of problems are framed as differential equations.

Question

14. Testing multiple linear restrictions with the F test
Suppose a data set of 350 observations (N=350) was analyzed using OLS to examine the factors that influence the salaries of professional baseball
players. 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)
where
salary
= total salary in 2003
years = years in the league
bavg = career batting average
gamesyr = average games played per year
hrunsyr = home runs per year
rbisyr
= runs batted in per year
R = 0.611
SSR = 199.32

log(salary) — 12.2 + 0.09 years + 0.025 датesyr
(0.026)
(0.13)
(0.002)
where
SSR (restricted) = 212.3
R (restricted) = 0.586
Since the unrestricted model has
degrees of 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.

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