Three equations for the course average of ECON3210 are estimated as follows. The first equation is for men, and the second equation is for women. The third equation combines men and women. Standard errors are in parentheses. Ym Yw y = = 20.52 + 13.60X₁ + 0.67X2 +0.058X3 (3.72) (0.94) (0.15) (0.01) 13.79 +11.89X₁ + 1.03X₂ +0.061X3 (3.72) (0.94) (0.15) (0.02) n=86 SSR = 1000 n=90 SSR = 1100 15.60 +12.82X₁ + 0.838X₂ +0.060X3 SSR=3300 (3.72) (0.94) (0.15) Where Ym = course average for men, yw course average for women, x₁ = overall GPA, X₂= ACT score, X3=Hours of study per week etc. You are to conduct Chow test that the regression equations are same for men and women. Compute the test statistic.
Three equations for the course average of ECON3210 are estimated as follows. The first equation is for men, and the second equation is for women. The third equation combines men and women. Standard errors are in parentheses. Ym Yw y = = 20.52 + 13.60X₁ + 0.67X2 +0.058X3 (3.72) (0.94) (0.15) (0.01) 13.79 +11.89X₁ + 1.03X₂ +0.061X3 (3.72) (0.94) (0.15) (0.02) n=86 SSR = 1000 n=90 SSR = 1100 15.60 +12.82X₁ + 0.838X₂ +0.060X3 SSR=3300 (3.72) (0.94) (0.15) Where Ym = course average for men, yw course average for women, x₁ = overall GPA, X₂= ACT score, X3=Hours of study per week etc. You are to conduct Chow test that the regression equations are same for men and women. Compute the test statistic.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Three equations for the course average of ECON3210 are estimated as follows. The first
equation is for men, and the second equation is for women. The third equation combines men
and women. Standard errors are in parentheses.
Ym
Yw
y
=
=
20.52 + 13.60X₁ + 0.67X2 +0.058X3
(3.72)
(0.94)
(0.15) (0.01)
13.79 +11.89X₁ + 1.03X₂ +0.061X3
(3.72) (0.94)
(0.15) (0.02)
n=86 SSR = 1000
n=90 SSR = 1100
15.60 +12.82X₁ + 0.838X₂ +0.060X3 SSR=3300
(3.72) (0.94)
(0.15)
Where
Ym = course average for men, yw course average for women, x₁ = overall GPA, X₂= ACT score,
X3=Hours of study per week etc.
You are to conduct Chow test that the regression equations are same for men and women.
Compute the test statistic.
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