Suppose we have sample data on (y,x) of size n. Consider regressing y on x and aconstant using the least square method (OLS estimation). The estimated equation isy = 2.59 +5.19 x + ewhere e is the residual. The standard errors for the constant and the coefficient were0.51 and 1.58 respectively.To test the null hypothesis of zero coefficient (for x) at a given significance level, wemay use t-statistic. Compute the t-statistic for the coefficient.Make sure the answer is round up to the nearest hundredth.e.g. 3.015 --> 3.02

The objective of the question is to compute the t-statistic for the coefficient of x in the given…

Answered: Suppose we have sample data on (y,x) of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
What is the value of the test statistic for a test with a null hypothesis that mu = 250, Xbar = 260 the standard deviation = 5 and n = 100?
The hypothesis test H0: μ ≥ 30 vs. Ha: μ = True False 30 has been correctly specified.
You use a dataset with 538 observations to run a simple linear regression. You find that the coefficient estimate is 3.258 and that the standard error of the coefficient estimate is 1.794. What is the lower end of the 98% confidence interval (of a two- sided test)? (you need to write a number that is rounded to the fourth digit after the decimal).
Assess whether the error terms of the econometric model in Wage=b0+b1(lQ) are normally distributed using the residuals from the sample regression function in wage=166.99+8.3(IQ), based on a histogram of frequency distribution, the skewness and kurtosis values, as well as the Jarque-Bera test statistic.
You are trying to determine whether or not variables x2 and x3 jointly affect y. You set up a null and alternative hypothesis appropriate to this question. Before forming your test statistic, what are the two models you need to estimate? None of these is the correct pair of models to estimate. y = Bo + B1x1 + B2x2 + B3x3 + B4x4 + u and y = Bo + v y = Bo + B1x1 + B2x2 + B4x4 + w and y = Bo + B1x1 + B3X3 + B4X4 + e y = Bo + B1x1 + B2x2 + B3x3 + B4x4 + u and y = Bo + B1x1 + B4x4 + v
Samples of four salespeople from each of four regions were asked to predict percentage increases in sales volume for their territories in the next 12 months. The predictions are shown in the accompanying table.West Midwest South East6.8 7.2 4.2 9.04.2 6.6 4.8 8.05.4 5.8 5.8 7.25.0 7.0 4.6 7.6a. Prepare the analysis of variance table.b. Test the null hypothesis that the four population mean sales growth predictions are equal.
What is meant by the assumption that the paired sample observations ofYi and Xi are independently and identically distributed? Why is this animportant assumption for ordinary least-squares estimation? When is thisassumption likely to be violated?
explain the p value
The management of a large firm would like to know something about employee morale and the other variables to which it may be related. To study these relationships, each employee in a simple random sample of 27 employees is interviewed and tested to obtain information concerning morale level and the average number of satisfying extra work social contacts experienced during a week. Whether or not the duties the employee usually performs are appropriate to the job title is also determined. The dependent variable Y is measure of morale, the quantitative independent variable, X1 is average number of social contacts, and the following dummy variable coding is used to quantify the qualitative variable: X₂ = 1 if yes, X₂ = 0 if no. The model including dummy variable and the interaction term was being estimated and a part of computer outputs is below:
Which of the following is a reason for using independently pooled cross sections? a. To increase the sample size b. To select a sample based on the dependent variable c. To select a sample based on the independent variable d. To obtain data on different cross sectional units
Claim: The mean systolic blood pressure of all healthy adults is less than than 123 mm Hg. Sample data: For 275 healthy adults, the mean systolic blood pressure level is 122.96 mm Hg and the standard deviation is 15.62 mm Hg. The null and alternative hypotheses are Ho: μ = 123 and H₁: μ< 123. Find the value of the test statistic. The value of the test statistic is (Round to two decimal places as needed.)

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