Homework Help is Here – Start Your Trial Now!
Math
Statistics
Univariate OLS, Inference with Binary Variable. You have collected 15,925 observations from the Current Population Survey. There are 7,285 females in the sample and 8,640 males. The females report a mean of average hourly earnings of $15.50 with a standard deviation of $7.06. The males have an average of $21.09 and a standard deviation of $10.85. (a) You accidentally regress average hourly earnings on an intercept only without any independent variable. What will the regression coefficient be? (b) Finally, you run the correct regression on the entire sample on an inter- cept and a binary variable M. This variable takes on a value of 1 if the individual is a male and is 0 otherwise. Denote the coefficient on the binary variable as B1. What will be the value of the intercept? What will be the value of B1? (c) What is the standard error of B1? (d) Compute the 95% confidence interval of B1 and test the null hypothesis thot 6

Univariate OLS, Inference with Binary Variable. You have collected 15,925 observations from the Current Population Survey. There are 7,285 females in the sample and 8,640 males. The females report a mean of average hourly earnings of $15.50 with a standard deviation of $7.06. The males have an average of $21.09 and a standard deviation of $10.85. (a) You accidentally regress average hourly earnings on an intercept only without any independent variable. What will the regression coefficient be? (b) Finally, you run the correct regression on the entire sample on an inter- cept and a binary variable M. This variable takes on a value of 1 if the individual is a male and is 0 otherwise. Denote the coefficient on the binary variable as B1. What will be the value of the intercept? What will be the value of B1? (c) What is the standard error of B1? (d) Compute the 95% confidence interval of B1 and test the null hypothesis thot 6

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
Univariate OLS, Inference with Binary Variable. You have collected 15,925 observations from the Current Population Survey. There are 7,285 females in the sample and 8,640 males. The females report a mean of average hourly earnings of $15.50 with a standard deviation of $7.06. The males have an average of $21.09 and a standard deviation of $10.85. (a) You accidentally regress average hourly earnings on an intercept only without any independent variable. What will the regression coefficient be? (b) Finally, you run the correct regression on the entire sample on an inter- cept and a binary variable M. This variable takes on a value of 1 if the individual is a male and is 0 otherwise. Denote the coefficient on the binary variable as B1. What will be the value of the intercept? What will be the value of B1? (c) What is the standard error of B1? (d) Compute the 95% confidence interval of ß1 and test the null hypothesis that B1 = 5.
Transcribed Image Text:Univariate OLS, Inference with Binary Variable. You have collected 15,925 observations from the Current Population Survey. There are 7,285 females in the sample and 8,640 males. The females report a mean of average hourly earnings of $15.50 with a standard deviation of $7.06. The males have an average of $21.09 and a standard deviation of $10.85. (a) You accidentally regress average hourly earnings on an intercept only without any independent variable. What will the regression coefficient be? (b) Finally, you run the correct regression on the entire sample on an inter- cept and a binary variable M. This variable takes on a value of 1 if the individual is a male and is 0 otherwise. Denote the coefficient on the binary variable as B1. What will be the value of the intercept? What will be the value of B1? (c) What is the standard error of B1? (d) Compute the 95% confidence interval of ß1 and test the null hypothesis that B1 = 5.
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS