The table below was extracted from Stata. It is an output of a regression that was conducted on EARNINGS in dollars (dependent variable), and the following as independent variables: AGE (years), S (years in school), MALE (dummy for male), LIBRARY, SIBLINGS (number of siblings), and ETHHISP (dummy for Hispanic respondents). Using the information in the table, answer the questions below: a) b) Source -Model Residual Total EARNINGS AGE MALE LIBRARY SIBLINGS ETHHISP cons ss 7454.91824 28115.9859 df 6 524 530 Coef. Std. Err. .3930994 1467907 1.278186 1407522 3.590323 6458634 .7641504 1.010765 -.1085979 .1566326 -.404548 1.356467 -19.26833 5.088757 MS 1242.48637 53.6564617 67.1149135 t Number of obs F(6, 524) Prob > F R-squared Adj R-squared Root MSE p>It! 0.008 9.08 0.0001 5.56 0.000 1.32 0.187 -0.69 0.488 -0.30 0.766 -3.79 0.000 6 W 1.001678 2.321524 -.4904096 -.4163029 -3.069328 -29.2652 531 23.16 0.0000 [95% conf. Intervall 0.2005 7.3251 1.554694 4.859123 2.51194 .1991072 2.260233 -9.271462 Using the confidence interval approach, state and explain whether the variable 'AGE' is statistically significant or not. Use a 5% level of significance, which give a 1.96 critical value. Using the P-value approach, state and explain whether the variable 'S (years in school) is statistically significant or not. c) Given the model specification is log-level, interpret the relationship between the Hint: Offer a 'AGE' variable and the dependent variable (EARNINGS). mathematical explanation of the interpretation.
The table below was extracted from Stata. It is an output of a regression that was conducted on EARNINGS in dollars (dependent variable), and the following as independent variables: AGE (years), S (years in school), MALE (dummy for male), LIBRARY, SIBLINGS (number of siblings), and ETHHISP (dummy for Hispanic respondents). Using the information in the table, answer the questions below: a) b) Source -Model Residual Total EARNINGS AGE MALE LIBRARY SIBLINGS ETHHISP cons ss 7454.91824 28115.9859 df 6 524 530 Coef. Std. Err. .3930994 1467907 1.278186 1407522 3.590323 6458634 .7641504 1.010765 -.1085979 .1566326 -.404548 1.356467 -19.26833 5.088757 MS 1242.48637 53.6564617 67.1149135 t Number of obs F(6, 524) Prob > F R-squared Adj R-squared Root MSE p>It! 0.008 9.08 0.0001 5.56 0.000 1.32 0.187 -0.69 0.488 -0.30 0.766 -3.79 0.000 6 W 1.001678 2.321524 -.4904096 -.4163029 -3.069328 -29.2652 531 23.16 0.0000 [95% conf. Intervall 0.2005 7.3251 1.554694 4.859123 2.51194 .1991072 2.260233 -9.271462 Using the confidence interval approach, state and explain whether the variable 'AGE' is statistically significant or not. Use a 5% level of significance, which give a 1.96 critical value. Using the P-value approach, state and explain whether the variable 'S (years in school) is statistically significant or not. c) Given the model specification is log-level, interpret the relationship between the Hint: Offer a 'AGE' variable and the dependent variable (EARNINGS). mathematical explanation of the interpretation.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Problem 1P
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Stata regression
Transcribed Image Text:QUESTION THREE (3)
The table below was extracted from Stata. It is an output of a regression that was
conducted on EARNINGS in dollars (dependent variable), and the following as
independent variables: AGE (years), S (years in school), MALE (dummy for male),
LIBRARY, SIBLINGS (number of siblings), and ETHHISP (dummy for Hispanic
respondents). Using the information in the table, answer the questions below.
a)
b)
C)
Source
Model
Residual
Total
EARNINGS
AGE
MALE
LIBRARY
SIBLINGS
ETHHISP
cons
ss
7454.91824
28115.9859
df
:
6 1242.48637
524 53.6564617
530
Coef. Std. Err.
3930994
1467907
1.278186 .1407522
3.590323 .6458634
1.010765 .7641504
-.1085979 .1566326
-.404548
1.356467
-19.26833 5.088757
MS
67.1149135
Number of obs
F(6, 524)
Prob > F
R-squared
Adj R-squared
Root MSE
t Ap>It!
0.008
9.08 0.0001
5.56 0.000
1.32 0.187
-0.69 0.488
-0.30 0.766
-3.79 0.000
&
=
1.001678
2.321524
-.4904096
-.4163029
-3.069328
-29.2652
=
-
=
=
531
23.16
0.0000
[95% Conf. Interva
0.2005
7.3251
1.554694
4.859123
2.51194
.1991072
2.260233
-9.271462
Using the confidence interval approach, state and explain whether the variable
'AGE' is statistically significant or not. Use a 5% level of significance, which give a
1.96 critical value.
Using the P-value approach, state and explain whether the variable 'S' (years in
school) is statistically significant or not.
Given the model specification is log-level, interpret the relationship between the
Hint: Offer a
'AGE' variable and the dependent variable (EARNINGS).
mathematical explanation of the interpretation.
ㅅ
2
d)
A sample of 5000 people from Eastern Province found that they eat an average of
7 'Mbeba' (rabbits) with a variance of 400. Using both, the one-sided and the two-
![sided approach, test the hypothesis that the population average is 6 Mbeba
(rabbits). Use either 95% or 99% confidence level.
e) In the above estimation [in table above], it was later discovered that the variable
LIBRARY' was an irrelevant variable in this model. Explain the implication of
adding this variable in the estimation.
f)
Further, in the estimation process, the researcher was faced with a decision to
make on two estimators. The first estimator had a small variance but was biased,
and the other one had a big variance but was unbiased. Explain the concept of
unbiasedness/biasedness and indicate which estimator you would choose between
the two. Give reasons for your choice.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd0646652-5f83-4f0b-9e19-a17e803f706a%2F8cb0d5e9-8eb4-47c7-96ce-5685098a9857%2Fx9451gqy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:sided approach, test the hypothesis that the population average is 6 Mbeba
(rabbits). Use either 95% or 99% confidence level.
e) In the above estimation [in table above], it was later discovered that the variable
LIBRARY' was an irrelevant variable in this model. Explain the implication of
adding this variable in the estimation.
f)
Further, in the estimation process, the researcher was faced with a decision to
make on two estimators. The first estimator had a small variance but was biased,
and the other one had a big variance but was unbiased. Explain the concept of
unbiasedness/biasedness and indicate which estimator you would choose between
the two. Give reasons for your choice.
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